How do you report the wages you paid then? as the original question asked is mine also. it states that line 1 on the W-3 must match what you put there on line 26? It appears that in your example, you still would be reporting tips as an expense, whereas the tips were not an expense incurred by the business. Side question, if this was reported erroneously last year, what is the recourse of action to take to make sure taxes are paid correctly? @MarilynG1
