Thank you for explaining this. I am in a similar boat as the original poster.
So, to effectively cancel the numbers out should I report the credit card tips that passed through me before going to the employees under "other income" on my Schedule C?
I've been a self employed filer for years but am new to having employees and have never used the "other business income" field before. But it seems wrong to include them in gross receipts.
Thank you @ThomasM125 !
