Cash tips are gratuities that are paid to employees in cash, rather than through their paycheck. You enter the reported cash amount so that we can withhold the taxes for these tips when you create paychecks.
Use the Cash tips pay type:
QuickBooks Online Payroll doesn’t support allocated tips as a pay type. However, if your employees receive allocated tips during the year, we can enter an adjustment on their W-2 forms to show the total amount of allocated tips.
To add cash tips to the payday page for an employee:
The next time you create a paycheck for the employee, the Cash tips column appears. Remember to select this pay type for other employees who also receive.cash tips.
After you set up a pay type for one employee, it shows up in the list, so it's easy to assign to other employees.
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