Customer Tips

[brooke_t]

Occassionally a customer will tip our technicians, usually with cash but sometimes on their check. How do I record this accurately? 

E.G. A customer wrote a check for $225, their invoice total was $200 and they tipped the tech $25.

Do I need to add a line item on the invoice so that when I export the payment I'm able to reconcile it? 

[MirandaMel]

As frustrating as it is, I agree with Jessica.  Depending on the area you are in would have an impact as to how that is accounted for.  I know we have different rules in Alberta than you would have in the States.

[JessicaSmith]

To do it LEGALLY, which is important, I would do it as a line item on the invoice that exports to a liability account called EMPLOYEE TIPS OWED or something like that, then I would pay those tips out on payroll as taxable income.