Feature Request: Allow employee to be paid $0 and that employee's tips to be recorded on W-2

[KalebCIvil]

The title of this post has been edited from the original: Net negative pay for tipped emplyees

If an employees cash tip tax liability is too large to be covered by the amount of wages earned in a payroll period an error occurs for net negative pay.  Please fix to allow the employee to be paid $0 and that employee's tips to be recorded on their W-2 so they may pay the owed tax when filing that years tax return.

[#2]

Hi @Eltoroloco

I was able to check in with our Payroll team and they got back to me with the following that addresses what you're seeing: 

The cash tips you’ve included in your payroll run are causing an error because there aren’t enough wages from which the employee’s taxes can be withheld. You’ll see an error if the funds deposited aren't enough to cover the taxes.

With the Cash Tips column, no funds are actually deposited into your employee’s bank account – the amount you report is used to calculate and withhold taxes from the employee’s total pay. If the taxes for these cash tips exceed the amount of gross pay, you’ll receive an error. We're not able to debit or collect additional funds from the employee for the tax due.

To avoid this issue in the future, you may want to enter the employee’s tips as Paycheck Tips. The amount entered in this field will be taxed accordingly and included in your employees’ paychecks.

[Joe]

Hi there, @KalebClvil - so sorry this issue is persisting for you. When you get a chance, would you mind flagging this over to our Support Team directly? They can walk through some extensive troubleshooting with you.

[KalebCIvil]

Unfortunately Joe there is not troubleshooting with this.  This is a payroll flaw. I have been on many phone calls about this flaw.  Your engineers, who no one can directly talk to, are who needs to fix it. 

[KalebCIvil]

The best direction I have received about fixing this is to post on the seller community. 

[Joe]

@KalebClvil - has our Support Team filed a ticket with our engineers while working with you?

[KalebCIvil]

Yep, and escalated it. 

[Joe]

Great! Thanks for letting us know, @KalebClvil

[KalebCIvil]

So still no resolution? What else am I to do? Just wait and hope it gets fixed? Nag on the seller community until it gets noticed?

[Joe]

We won't be able to have visibility on a specific ticket you've filed with our Support Team here from the Community, @KalebClvil. You will need to reach out to them directly for more insight.

You are welcome to post here on the Community at any time, but we often cannot assist with specific account-related inquiries.

[KalebCIvil]

Firstly, this is not an account related issue, it is a product flaw. Are you able to explain to me how net negative pay works? What reason would an employee owe the employer money through payroll?

[diedtric]

Hello - has there been any resolution to this process? Having the same issues. Other payroll providers have this figured out. Not sure why this is so hard - tipped employees who are paid out all of their tips daily will have this issue from time to time. Usually, the employee's pay for worked hours will make up for the amount paid out to taxes, etc. We need a way to reduce the negative amount to zero so that the payroll will run and then a way to track that amount - I tried reimbursing the employee, which is like giving them an advance against what they owe, run the payroll, and then "reverse the reimbursement" with a post-tax advance that is applied to the next payroll run. Any other solutions?