You need to calculate the year-to-date amount of employee reported tips. What do you need to create?

• A. Tip Ledger
• B. Bonus Schedule
• C. Pay Balances
• D. Pay Register

Answer: (C)

Tracking year-to-date tip amounts relies on a persistent balance for the tips earnings. In payroll systems like this, you create a Pay Balances entry for the tips component so the system can accumulate the tip amount across each payroll run. Each time you run payroll, the tip amount from that period is added to the existing balance, giving you the current YTD figure.

The other options don’t fit this purpose. A Tip Ledger isn’t a standard, built-in object used to store YTD totals. A Bonus Schedule relates to scheduled bonuses, not daily/regular tips. A Pay Register is just a report of payroll results; it doesn’t store or maintain the ongoing YTD totals that you need to calculate and reference.

So, to calculate the year-to-date amount of employee reported tips, you create Pay Balances.