If an employee receives cash tips, you can record them on their paychecks to calculate how much tax to withhold. Before you run payroll for an employee with cash tips, you will need to add cash tips as an addition.
Click "EMPLOYEES" from the main menu.
Select the employee you would like to add cash tips to.
Click "PAY INFORMATION".
Click "ADD PAY RATE".
From the dropdown menu, choose "CASH TIPS (REPORTING)".
You can either enter an amount for cash tips, or enter "0" and change the amount during the payroll run.