Skip to main content

Get 50% OFF QuickBooks for 3 months*

Buy now
Switch to QuickBooks and 70% off for 3 Months
March 8, 2019
Question

Tip reporting

  • March 8, 2019
  • 1 reply
  • 1 view

Why are my tips being reported on Line 7 of W2 and not included in Box 1

 

1 reply

QuickBooks Team
March 8, 2019

Thanks for bringing this situation to my attention, LuanneJ,

 

I'm here to help share information on how QuickBooks populate W2 boxes.

 

Box 1 of your W2 reports your total taxable wages for federal income tax purposes. QuickBooks calculates the total wages, tips, bonuses, overtime pay, etc., that are subject to federal income tax, and paid to the employee during the reporting year. 

 

You can verify the QuickBooks result by running the Payroll Item Listing report.

 

As for Box 7 of your W2, this reports the amount of tip income you reported to your employer. If you did not report tips to your employer, you will not have an amount in this box. The amounts in Box 7 and Box 3 should add up to the amount in Box 1, or the $90,000 maximum wage limit for Social Security taxes.

 

To verify this information, you can run a Payroll Summary report for the entire calendar year.

 

Here's a  great resource you can check for more information: W2 form boxes explained.

 

Keep me posted on how things go concerning W2, I'm always here to help. 

LuanneJAuthor
March 12, 2019

It is my understanding tips should be entered into box 1.  Also when correcting W2s the amount does not hold in the W2c.  The moment I leave the amount disappears and does not print on W2c

January 28, 2020

Luanne,

 

Still didn't answer the question...……"Why are my tips being reported on Line 7 of W2 and not included in Box 1?"

 

Please explain.

 

Thanks, Kevin

[email address removed]