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Correct Tips Reported in payroll. Tips in is $0.03 more than tips out.

In my payroll, in the deductions area, I report the amount of tips my employees have taken during that payroll period. I also deduct that exact tip amount from the same paycheck so that the taxes are taken out of their payroll.

However, there is one paycheck this year that I accidentally reported $0.03 more  on the tips in than on the tips out of one persons paycheck.

We are at the end of the year and there are no more paychecks to cut (otherwise I would correct it on next payroll) and I need to correct this so that their taxes are correct for year end reporting.

 

How is this corrected?

1 Comment
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Anonymous
Not applicable

Correct Tips Reported in payroll. Tips in is $0.03 more than tips out.

It's probably not important to correct.  If the tips in amount (wages) is correct, and the tips out (net deduction) is not , there is literally nothing to correct from a payroll reporting POV.

 

If tips in is incorrect, off by .03, then this is such a small amount it is immaterial.  Like a rounding error or something.  The IRS doesn't even want cents on much of your 1040 - not worth bothering with.

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