If you receive tips as part of your employment, you must claim all tip income that you receive. This includes both the tips that you receive directly from a customer as well as tips that your employer pays to you when a customer makes a credit card payment.
Tip Requirements for Employees
Employees must use Form 4070, Employee’s Report of Tips to Employer, to report tip income. This report is due on the 10th day of the month after the month the tips are received. This statement must be signed by the employee and must show the following:
- Employee’s name, address, and SSN
- Employer’s name and address
- The month or period the report covers
- The total tips received
No report is required from an employee for months when tips are less than $20.
Both Forms 4070 and 4070-A, Employee’s Daily Record of Tips, are included in Publication 1244, Employee’s Daily Record of Tips and Report to Employer.