Deadline: Form 4070 – Employee’s Report of Tips to Employer

Report tips to the employer, unless the total is less than $20 per month per employer

The Internal Revenue Code requires employees to report (all cash tips received except for the tips from any month that do not total at least $20) to their employer in a written statement. Cash tips include tips received from customers, charged tips (for example, credit and debit card charges) distributed to the employee by his or her employer, and tips received from other employees under any tip-sharing arrangement. No particular form must be used; however, the statement must include:

• Employee signature,
• Employee’s name, address, and social security number,
• Employer’s name and address (establishment name if different),
• Month or period the report covers, and
• Total of tips received during the month or period.

The employee may use any document that has the above elements such as Form 4070, Employee’s Report of Tips to Employer, (available only in Publication 1244, a form that is provided by the employer or an electronic system provided by your employer to report your tips.

Both directly and indirectly tipped employees must report tips to the employer.