accounting for tips in your ledger

have a client that has 90k in wages in box 1 of w3

the social security wages are 85k

the difference is tips

on my ledger, my gross payroll should tie out to 85k, correct?

Form W-2 Box 1 Wages, Tips & Other Compensation
This should equal the gross wage that the employer paid plus tips the employee received from customers, that the
employee reported to the employer.

Box 3 Social Security Wages
This should equal the gross wage that the employer paid

Box 7 Social Security Tips
This should equal the tips that the employee received from customers, that the employee
reported to the employer

Box 3 + Box 7 equals Box 1

The gross wage expense to the employers business is what the employer paid to the employee. The employee received tips from the customers not the employer.