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taxangel
Mar 25, 2019 11:45 AM UTC
Solved

Should the Payroll Expense account on the P & L match the Form W-3 when there are Reported Cash Tips and Offset or do I need to create a journal entry for cash tips?

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JonpriLAnswer
Mar 25, 2019 7:06 PM UTC

Glad to have you back, @taxangel!

 

Allow me to chime in for a moment and share additional insights about your Profit and Loss report.

 

First, you'll have to review and verify each of your payroll items created from the Payroll Items list.

 

Secondly, review your payroll expenses if it has the same amount with the payroll expense account of your Profit and Loss report.

 

After reviewing and the amounts don't match, make the necessary changes and add cash tips to your income manually.

 

Lastly, here's an article you can check out and proceed to Profit & Loss and Balance Sheet Detail reports: Customize Company and Financial Reports.

 

I'll be always around here in the Community if you have any other questions about your reports. Just leave it in the comment section below.

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6 replies

Kristine Mae
Kristine Mae
Mar 25, 2019 1:53 PM UTC

Hello there, Taxangel.

 

The payroll expense amount in the Profit and Loss report is the total gross wage. They don't match with the W-3 form. 

 

You don't need to create a journal entry for the cash tips. You can set it up in QuickBooks Online. Here's how:

  1. Click Workers, then choose Employees.
  2. Choose an employee, then click to open the employee's profile.
  3. Click the Pencil icon next to Pay.
  4. Click the Pencil icon in the Additional pay types section.
  5. Under You can also pay Employee, choose Cash Tips.
  6. Click Done, then Done again. 

You can refer to this article for more information: Cash tips.

 

If you have further questions, please leave a comment below. 

john-pero
john-pero
Mar 25, 2019 2:31 PM UTC

Total payroll expense can also include employer share of taxes, if you set it up that way. Payroll taxes can be posted right along with property taxes on forms but to me is more confusing 

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