Yes, that's right, @2robertc. We cannot accrue it as employee revenue in 2024 and then pay it as partner revenue in 2025. Below, I am sharing additional information to clarify things regarding year-end entry accrual.

As mentioned by my colleague above, since Dr. A earned $10,000 while classified as a W-2 employee, it should be reported as W-2 income for 2024. To ensure compliance, process the payment by issuing a paycheck on December 31, 2024. This will guarantee its inclusion on the 2024 W-2 form. Under the accrual accounting system, accruing this expense in 2024 is appropriate. Ensure the payment reflects applicable withholding taxes and deductions consistent with W-2 employment requirements.

Also, Journal Entries (JE) won't affect any payroll forms. Thus, it can only balance your books. This reference can give you more details about JE: Create a journal entry in QuickBooks Desktop for Windows or Mac.

Moreover, learn how to verify the status of payroll tax forms and payments submitted electronically via QuickBooks to the IRS or state agencies: Check the status of your payroll tax payments or filings sent through QuickBooks Payroll.

You can always rely on us here in the QuickBooks Community for additional assistance with your payroll forms. I'll be right there to help you whenever you need it.