QB Issue Resolution:

You don’t need Tips In and Tips Out. You need one item that is a Company Contribution Item for Reported Tips.

The Liability account link and the Expense account link BOTH go to the same, one, account. That way, it is a Taxable entry with No impact to the financial data at all.

You use Tips In and Tips Out, because the employer has some of the funds and will be adding this to paychecks.

Resolution for Issue 'How do I show cash tips as paid after I use tips in and tips out items in payroll?' available: Yes (Solved).
Source: Intuit Community forum.

How do I show cash tips as paid after I use tips in and tips out items in payroll?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.

Support for Company Contribution Item
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Error Recovery for Company Contribution Item [Canada]
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