Do I necessarily have to move tips out of the undisturbed tips account on quickbooks if I already pay those tips out to employees on their checks?

Hi kimberlyellwood-,

Basically, those undistributed tips are money that should be given to employees. Therefore, yes, if you've already given them to your employees through their paychecks, the Undistributed tips account should also decrease.

Normally, if you have QuickBooks Online Payroll, you'd only need to create a Cash tip or Paycheck Tip item where you enter the amount you give to your employees. Then, QuickBooks will do the accounting in the background, moving out the same amount from the Undistributed tips account. Learn more about paying and reporting tips.

Since you're manually tracking tips, I'd recommend consulting an accounting professional to know how you can move out the tips from the said account.

You can always go back to this thread if you have more questions about tips. Have a good one!