Set up a payroll item for allocated tips as a
Important: Because allocated tips do not create a payroll liability
for your company, do not enter a liability account in the
Liability Account field when setting up the item. Instead, enter the
same expense account as the one you enter in the Expense
Account field. When QuickBooks asks if you are sure you want both accounts to
be the same type, answer Yes.
For the tax tracking type, choose Allocated Tips.