Report cash or paycheck tips
You can enter cash and paycheck tips for employees in your regular payroll.
- Click the Run Payroll tab.
- Click Run Regular Payroll.
- Next to your employee's name, click Other Earnings.
- Add Paycheck Tips if the employee hasn't been paid the amount yet. These tips will be paid to the employee in this payroll.
- Add Cash Tips if the employee has already been paid the amount. These tips will only be taxed.
- Click Save.
- Finish running payroll.
Both paycheck and cash tips will be taxed as regular wages. The tips will appear as separate line items on the employee's paystub.