Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips |
|
For tips received for services performed after 2006, the amount of tips for any month that is used to figure the credit must be reduced by the amount by which the wages that would have been payable during that month at $5.15 an hour exceed the wages (excluding tips) paid by the employer during that month.
For tax years beginning after 2006, the credit is allowed against both the regular tax and the AMT.
--09-APR-2008
|
|
|
Page Last Reviewed or Updated: November 14, 2008