Cash Tips ONLY

•When the employee is reporting the amount of tips they have already received (cash, credit card tips paid out in cash at the end of their shift, etc.)

•Setup

•Click Setup

•Click Paycheck Setup

•Select 'Tips Decl' as one of the Adjustments to Income fields (left side of the Paycheck Setup screen)

•Select 'Tips Ded' as one of the Paycheck Deduction 'Types' (right side of the Paycheck Setup screen)

•Entering the Tip Amount

•Enter the tip amount on the left side of the Paycheck entry screen, the 'Tips Decl' box (below the hour entry boxes).

•The same amount will automatically be deducted in the 'Tips Ded' box on the right side of the paycheck entry screen.

•By entering the tips declared on the left side of the paycheck entry screen, you are adding the tips to the gross pay so the employee can have the proper tax amounts withheld.

•Since the employee has already received the tip amount, the same amount is deducted from their pay in the 'Tips Ded' field.

Unpaid Tips ONLY

•When the employer is reporting the amount of tips they are paying the employee on this check (tips received by credit card, but not paid out daily)

•Setup

•Click Setup

•Click Paycheck Setup

•Select 'Tips Decl' as one of the Adjustments to Income (left side of the Paycheck Setup screen).

•DO NOT use 'Tips Ded' as one of the paycheck deductions.

•Entering the Tip Amount

•By entering the tips declared on the left side of the paycheck entry screen, you are adding the tips to the gross pay so the employee can have the proper tax amounts withheld.

•Since the employee has not yet received their tips, there is no deduction from net pay for the tip amount.

BOTH Cash and Unpaid Tips

•When the employee is reporting the amount of tips they have already received AND there are tips which have not yet been paid to the employee (credit card tips not paid out in cash)

•Setup

•Click Setup

•Click Paycheck Setup

•Select 'Tips Decl' as one of the Adjustments to Income fields (left side of the Paycheck Setup screen)

•Select 'Tips Ded' as one of the Paycheck Deduction 'Types' (right side of the screen)

•Entering the Tip Amount

•As you enter the paycheck information, enter the total tip amount (cash, credit card, etc.) declared on the left side of the Paycheck entry screen, the 'Tips Decl' box (below the hour entry boxes).

•Change the 'Tips Ded' amount on the right side of the screen to deduct ONLY the tip amount the employee has already received (cash, credit card tips already paid out, etc.).

•By entering the tips declared on the left side of the paycheck entry screen, you are adding the tips to the gross pay so the employee can have the proper tax amounts withheld.

•Since the employee has already received some of the tip amount (cash), the amount already received should be entered (deducted) in the 'Tips Ded' field on the right side of the paycheck entry screen.

NOTES

•When creating paychecks, all Tips declared (reported) by the employee MUST be entered in the income adjustment called 'Tips Decl'.

•The Tips Deducted amount (in the paycheck deduction area) must never be more than the Tips Declared amount (income adjustment area).