You are correct, even if you are audited, it should be easily explained. The auditor really shouldn't even bring it up.
I audited a number of restaurants during my career. Several audits focused on tips and tip reporting. It was never a problem to reconcile W-3 gross wages to wages deducted on the tax return. The difference should be the reported tips. If that doesn't reconcile, then there may be other problems.
The biggest problem was unreported tips. There were a few instances when charged tips were greater than reported tips.....how does that work?
**Disclaimer: Effort has been made to offer correct information; but due to the discussion forum limitations, the poster disclaims any legal responsibility for the accuracy of the poster's response**
