@AmyC Please bear with me. 🙂 Tips received by employees are not reported as income by the business owner, but they must pay the various taxes on them. I understand and thankfully i am doing that.
However, I'm still not fully seeing why i would report the tips as part of my business expense, which is what i would do if i report Box 1 from the W3 as my employee wage expense on the Schedule C.
