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How to Include Tips in your Payroll
How to Include Tips in your Payroll

Tips are taxable income, just like wages. Here's how you can include tips in a payroll run.

Updated over 4 months ago

There are two different tip types for use depending on your needs:

  • Cash (paid) tips - tips that the employee has already received as cash

  • Unpaid tips - tips that the employee has not yet received (typically from credit card tips)

  1. To include paid and unpaid tips as an entry field, navigate to App Settings in the left-hand menu

  2. Under "Run Payroll Settings" turn on the desired tip line item

  3. After saving, the selected tip line item will be displayed in payroll runs

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