Payroll Tips
bren
Member Posts: 1
Our POS accounts for tips, we put them into the bank, then they are payed out by payroll. What is the best practice for accountingfor tips? I split the transaction for the deposit into POS sales and added a liability account, but it is still asking for a Expense Category. Thanks in advance for help on this issue.
0
Comments
Hey there! Our Payroll service is not necessarily optimized for tips. For example, adding them as a bonus pay would not yield the correct tax deductions.
With regards to accountingthe tips themselves, we have found some users avail of the following workaround: