ILLMAS Posted October 1, 2018 Report Share Posted October 1, 2018 Is there any instances where W3/W2 box 1 wages shouldn't tie to a tax return (officer/wages)? I reviewed a tax return and the wages on the 1120 are less than box 1 of the W3/W2, according to the TP, he was told he is not supposed to report tips because it's not his expense. This was not a self-prepared return, he paid someone to prepare it. Quote Link to comment Share on other sites More sharing options...
Lee B Posted October 1, 2018 Report Share Posted October 1, 2018 If you are saying that he is an officer of a C corp and he is reporting tips that he received due to being an employee of the C Corp, then he is correct. Quote Link to comment Share on other sites More sharing options...
ILLMAS Posted October 1, 2018 Author Report Share Posted October 1, 2018 No, it's the tip portion the waitresses received that is not being reported on the tax return, 941's & W3/W2's match, just the wages are under reported on the tax return significantly. Quote Link to comment Share on other sites More sharing options...
Evan S. Golar Posted October 1, 2018 Report Share Posted October 1, 2018 The tip portion the waitresses received is not an employer expense. Only the employer's portion of the FICA/Medicare on the tips is an employer payroll tax. 3 Quote Link to comment Share on other sites More sharing options...
jklcpa Posted October 2, 2018 Report Share Posted October 2, 2018 ... and the payroll tax expense deduction must be reduced by the amount from line 4 of the form 8846, which is the employer's share of fica and medicare taxes on the tips used to claim the tip credit. 1 Quote Link to comment Share on other sites More sharing options...
WITAXLADY Posted October 2, 2018 Report Share Posted October 2, 2018 are you talking his own W-2? does it balance out with box 7 as tips then.. the rest should still balance... Or in a new restaurant I have- she is not claiming the additional tips or credit cards tips coming thru the till - says they are hers... and not going anywhere - different scenario! As I said they need to show as her income - other... 1 Quote Link to comment Share on other sites More sharing options...
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