Results 1 to 6 of 6
  1. #1

    Default Employer "doesn't know" how to report my tips

    I just started working for a new company two weeks ago. every night when i clocked out i wrote down my tips. We were told to do this in orientation so that it could be reported to the IRS and taxed. When I got my 1st paycheck monday, I noticed that no tips were showing on my paystub. When I asked my employer about that, he said he "doesn't know how to report tips". Then he asked me if I really wanted them reported because nobody else does. This bothers me. The last person I want to mess with is the IRS. I don't want to find myself trying to scrape up money next april. What should I do?

  2. #2
    Join Date
    Jul 2006
    Posts
    5,438

    Default Re: Employer "doesn't know" how to report my tips

    Q: What should I do?

    A: Ask your employer to hire a bookkeeper to tell him how to do this. Otherwise, you hire a bookkeeper and ask how you should do it.

  3. #3
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    74,341

    Default Re: Employer "doesn't know" how to report my tips

    Cayla doesn't need a bookkeeper. She would just keep a bit of the untaxed money in her savings account until the end of the year, then pay taxes on the unreported income. If it's a high enough amount it may make sense to pay quarterly in the first year, and they might be required in subsequent years.

    But let's read between the lines. The employer knows how to report this income. The problem is that the employer knows that if, after many years of reporting no tip income for any employees, a single employee (and that employee alone) starts to report significant amounts of tip income, the IRS is likely to audit the employer.

    If I'm right, and I think I am, the employer doesn't want to be educated, and doesn't want to be pressed on the issue, but instead wants to maintain a status quo where it is pretended that none of his employees earn tips.

  4. #4

    Default Re: Employer "doesn't know" how to report my tips

    Mr know-it-all
    If you are right, the right thing for me to do is still report mine isn't it? If i report mine, can the employer LEGALLY fire me? I know there are ways of getting around the legally part, but I want to know what the law says. Thank you so much for all of your helpful advice

  5. #5
    Join Date
    Oct 2005
    Location
    Massachusetts
    Posts
    755

    Default Re: Employer "doesn't know" how to report my tips

    Unless you are a union employee, you can be fired for any reason.
    Of course the employer wont fire you because of you wanting to report your tips. But he/she can just say I'm letting you go because you are slow, receive complaints about you, you keep dropping things, or hell, he/she could just lay you off and site cutbacks.
    My advice, keep a log of your tips ( 8% of your gross income for that tipping job is what alot of people claim ( if anything)), and report it next year.
    It really won't make a huge dent in dropping your refund, or raising what you owe.( unless you do it as a full time job )

  6. #6
    Join Date
    Oct 2006
    Posts
    5,743

    Default Re: Employer "doesn't know" how to report my tips

    Quote Quoting cayla99
    View Post
    Mr know-it-all
    If you are right, the right thing for me to do is still report mine isn't it? If i report mine, can the employer LEGALLY fire me? I know there are ways of getting around the legally part, but I want to know what the law says. Thank you so much for all of your helpful advice

    If you report your tips, on your personal tax return, and pay the associated taxes, its not very likely that your employer will ever be aware that you have done so.

    If your employer ends up being investigated, sometime down the road as a result, its unlikely that your employer would ever know that your particular tax return initiated the investigation.

    1. Sponsored Links
       

Similar Threads

  1. Debt Collectors: Can a Collection Agency Try to Collect a "Debt" if I Wrote "Paid in Full" on a Bill
    By tipper369 in forum Debts and Collections
    Replies: 4
    Last Post: 12-27-2010, 10:02 AM
  2. Eviction Process: Oral Lease With No Money Paid nor Proof of Residency. Can I "Evict" This "Tenant"
    By trashyvocabmom in forum Eviction
    Replies: 1
    Last Post: 11-19-2010, 03:24 AM
  3. Security Deposits: Landlord is Trying to Charge Second Pet Deposit. Lease Doesn't State "Per Pet."
    By TwinsFan in forum Moving Out
    Replies: 1
    Last Post: 04-13-2010, 06:56 PM
  4. Naturalization: How to Report "Adjourned in Contemplation of Dismissal (ACD)" on N-400 Form
    By WhoRunTings in forum Permanent Residency and Naturalization
    Replies: 2
    Last Post: 01-28-2009, 09:27 PM

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  
 
Forum Sponsor
Free Tax Forms
Download free federal tax forms.




Untitled Document