How to Add Reported Tips as Earnings
- Go to the Settings tab of the Payroll app.
- Click on Pay Types from the left hand menu.
- Enter the Earnings Name.
- Select Reported Tips for the Earnings Category.
- Click Create to save.
- Go to the relevant run and click on the employee's name.
- Click on +Add Earning under the Earnings section.
- Enter the total amount of tips.
- If the total regular earnings isn't enough to cover for the total due for taxes, the section for Uncollected Employee Taxes will show the amount of money we were unable to collect this run, and will roll it over to the next run.
Reported Tips & Taxes
In the example paystub below, the blue arrow displays if there are any uncollected taxes in the current pay run. If an employee has uncollected taxes, the paystub will display a positive number under the Estimated Uncollected Taxes. In the scenario that the employee was able to contribute some uncollected taxes from the previous pay run, you’ll be able to see a negative amount displayed under the Estimated Uncollected Taxes section.
The green arrow displays if there are any remaining uncollected taxes for the year. If there is a positive number displayed, then the employee is still responsible for remitting this amount throughout the year. If there is $0, then the employee is caught up with their uncollected taxes.
Where can I find a report on tips or their uncollected taxes?
The new Reported Tips report will show a snapshot of employees who have reported tips or who has uncollected taxes. To download the report, follow these steps:
- Go to the Payroll app on your administrator dashboard.
- Select the Reports tab.
- Scroll all the way down until you see the Reported Tips report and click on Create.
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