Can you have reconciling items between wages expense and the W-3?

Thank you for reaching the Community, jaspitzer.

I'd like to share some insights about the difference between reports and forms in QuickBooks Online.

W3 form is a summary all reported W2 to track wages, salary, commission, tips, and other compensation employers pay out throughout the year. Whereas, Profit and Loss report summarizes the total revenues, costs, and expenses incurred during a specified period.

That being said, we don't have an option to add a reconciling item or match the amount in the profit and loss report for the payroll items shown on your W3.

I'd suggest checking this article for a payroll report that'll help you review the payroll transactions in W3 form: Run a Payroll Tax and Wage Summary report.

You may also learn how to personalize your own report by checking this article: Customize reports in QuickBooks Online.
 

Let me know if you still have other questions about reports and forms in QBO. I'll be here to help. Have a good one.

Thank you for responding, but I don't think you are understanding my question.  I am hoping for guidance from the community regarding whether or not there can be reconciling items between wages expense reported on the p&l and the amount of wages reported on the W-3.  Specifically, I am wondering if pre-tax deductions, such as employee health care premiums are an allowable reconciling item between wages expense and the W-3.

This is not a question having to do with any functionality of Quickbooks Online or QuickBooks Payroll software.  I do understand the function of the W-3 form.  Thank you.

 Hello there, @jaspitzer.

I appreciate you for getting back here. I can see that you're verify familiar with the form.

There's no need to reconcile items between wages on the P&L report and the W-3 form. As advised, QuickBooks reports and W-3 forms or other payroll forms work differently. With that, we're unable to reconcile them.

The Profit and Loss statement generates information based on how all transactions are being entered in your book. The report is a written presentation of factual information based on the data in your QuickBooks Online account. 
 

While the form W-3 summarizes W-2 employee information. Along with the articles shared by my colleague above, you can also check this article to get more information: You may need to file a W-3 with QuickBooks Payroll.

The Community is always here if you need additional details. Stay safe, jaspitzer.

I'm going to try to phrase my question differently.  It has nothing to do with Quickbooks software.  I am not looking for assistance with my Quickbooks or my payroll software.  Nor am I asking you how to reconcile the p&l and the W-3.

I am asking the community if the IRS mandates that wages expense on the p&l (and the tax return) must equal the amount of wages on the W-3, or if the IRS allows reconciling items, such as pretax deductions, such as employee healthcare premiums.

Thank you!

Hi there, jaspitzer. 

As mentioned by my colleague above that there's no need to reconcile items on the P&L report with wages on the W-3 form because QuickBooks reports and W-3 forms or other payroll forms work in different ways.

To verify if the IRS mandates that wages expense on the Profit and Loss Report,  I recommend contacting the IRS. You can reach them through this page: https://www.irs.gov/help/telephone-assistance.

I've added these articles to learn when you may need to file a W-3 form with QuickBooks Payroll:  You may need to file a W-3 with QuickBooks Payroll.

Should you have other questions about the report and forms, please don't hesitate to hit the Reply button. I'm always here to help.

Thank you again for responding, but this is not an answer to my question nor are you even correct.  The p&l to the should reconcile to the W-3.  This is pretty basic.  I'm just not sure if the amount has to agree exactly or if there can be allowed reconciling items.

I shouldn't have to contact the IRS. There should be guidance somewhere that someone can point me towards or there should be a tax expert who can weigh in.

Thank you.

Hi @jaspitzer

I agree with you, a tax expert would be the best candidate to give you accurate information. Our QuickBooks Community is primarily accounting and payroll-centric. 

May I suggest posting your question in the TurboTax Community? There are many experts in that forum that could weigh in with better insight. I've provided the link below for your convenience.

TurboTax Community

Please feel free to let us know if we can help with any QuickBooks or payroll questions. We are definitely here for you for those.