The National Directory of Certified Public Accountants

Ask A CPA - Bookkeeping & Write-up

Are The Waiters That Work For Me Required To Report To Me All The Tips They Earn For My Tax Reporting Purposes?

Restaurants employing at least 10 people must make a special report to the IRS of income and allocated tips. In 2010 the IRS assumed tip income of 8%. The allocated amount is shown on an individuals’ W-2 as tip income.

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