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Direct Tips in Cash

Hello Experts,

I have this scenario.

Employee gets Tips in Cash which is needed to be logged into system.

The tips should come under gross, taxable gross and not into net pay ( This was achieved).

The issue rises with the reporting. The tips are reflected in 941 and W2 when I mark the PCL 84 as Tip income, but the payslip returns negative taxes as attached.

Please advise how to counter this situation.

Best Regards

Upendra

tips.jpg

tips.jpg (30.7 kB)
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