For Squirrel Classic (DOS Based)
This must be done after you close the payroll period and BEFORE you start Point of Sale for the next day -- go into labour, employee setup, find the employee and press F4 twice to delete the employee
Then you go into System Configuration and find the employee and press F4 twice to delete the employee.
It's very important that you do this after you close the payroll period and BEFORE you start pos for the next day.
For SquirrelONE (SQL/Windows Based)
Go into Labour>employee job information and remove all the jobs assigned to the employee.
Then go into employee setup and remove the badge information, then delete the employee by clicking on the X in the toolbar (delete).
Keep in mind that you cannot delete an employee if you have transactions for this employee within the current payroll period -- you would have to wait until you close the payroll period.
In regards to tips -- there is no area within tips, as I am aware, to delete employees -- they are linked via labour - so when you delete them there, they are no longer part of tips....
I hope this helps!