Qualified tips

• Enter using PR, Processing, Time Card Entry.
• Select either Tips, cash or Tips, charged.
• We tax tips and display them on your year‑end W‑2.

Non-qualified tips 

Negotiated tips or tips that the customer has to pay (non-voluntary) or mandatory or automatic gratuities (the automatic service charge added or large party gratuity).

• Create an Other Pay for the tips.
• Assign the Other Pay to the Employee using PR, Employees, Maintain Employees, Other Pay.
• Then enter using PR, Processing, Time Card Entry.
• Select the Other Pay you created.
• We tax tips (depending on the Other Pay setup). These tips won't display as qualified tips on the W-2 at year-end.