If your employees receive tips, it is important to remember that tip income is taxable. Employees must report all tips they receive, and you must withhold payroll taxes on tips.

Taxes on reported tips

员工s can receive tips directly from customers, from tips charged to credit cards, or fromtip poolingagreements.

If an employee receives $20 or more in tips during a month, they must report all their tips to you, including the initial $20. To report their tips, employees can useForm 4070, Employee’s Report of Tips to Employer(found inPublication 1244). Employees must report their monthly tips to you by the tenth day of the next month. They can simply do this by handing you their Form 4070.

Reported tipsare subject to taxes.As the employer, you must withhold taxes on tips and regular wages.Use an employee’s reported tips and regular wages to figure out how much to withhold.

Tips are subject toFITW tax(federal income tax withholding),社会保障andMedicare税收（见FICA tax rates). Reported tips might be subject to state and local income tax withholding.

You must also pay the employer portion of the FICA taxes.

You can withhold taxes (including payroll taxes on tips) from an employee’s regular wages. Because of thetip credit，员工可能没有足够的工资来支付税款。如果没有足够的工资来扣除所有税款，请按以下顺序扣除税款：

1. 工资的社会保障和医疗保险税
2. Federal income taxes on wages
3. State and local taxes imposed on wages
4. 社会保障and Medicare taxes on tips
5. Federal income taxes on tips
6. State and local income taxes on tips.

In the next pay period, withhold the remaining taxes. Employees can also give you money to cover the taxes they owe on their wages and tips.

You will withhold any unpaid income taxes from employees’ paychecks, up to the end of the year. However, if there are unpaid Social Security or Medicare taxes on tips by the 10th of the month after the month employees reported the tips, you do not have to collect the taxes. Mark the uncollected amount as an adjustment on yourForm 941. If you cannot collect all taxes by the end of the year, employees might need to make预估税的支付. If employees do not pay enough taxes, they might owe penalties.

On theW-2 Form for employees, include employee wages and reported tips in box 1. Also, show any uncollected taxes.

Taxes on allocated tips

If you run a large food or beverage establishment, you must provideallocated tipsto employees if the total amount of tips during a payroll period are less than 8% of your business’s gross receipts for that same period.

You run a large food or beverage establishment if:

1. Your business is located in the 50 states or the District of Columbia.
2. Tipping by customers is customary.
3. You employed more than 10 employees on a typical business day during the previous year.

Allocated tips are not subject to tax withholding. You will not withhold taxes nor make tax contributions on allocated tips. You must report allocated tips in box 8 on each employee’s Form W-2.

员工s should use表格4137to calculate the Social Security and Medicare taxes owed on their allocated tips.

Taxes on service charges

添加到客户账单中的服务费用被认为是非尖端工资。服务费用可以包括瓶装费用，大型政党费用和送货费。这些非尖端工资未报告提示工资；但是，它们仍缴纳所得税和FICA。

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This article was originally published on 9/17/2015.