Carl
Level 15

Get your taxes done using TurboTax

it sounds like you need help with Quickbooks rather than Turbotax

I haven't taken the time to look at the details. But in the desktop version of QB2018 and newer, you have your payroll liabilities assigned to a specific tax line. You need to create a sub-account under your payroll liabilities and leave the tax line assignment as "unassigned".

Then when employees report their tips to you at the end of each shift, you enter the amount in the sub-category of where you record what you pay your employees each pay period.

What you pay your employees is reported in the category with the tax line assignment.

What your employees receive as tips, gets assigned to the sub-category under that, which has no tax line assignment.

Then when you generate pay stubs, make sure you set it up to include the payroll category and exclude the sub-category under it. Otherwise, if the paystubs include the tips, then so will the paycheck you issue them.