ITG FAQ #3 Answer-What are tips of $20.00 or more while working for any one employer subject to? |
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Tips paid in cash (or checks or other cash equivalent, including charged tips) of $20.00 or more, that an employee receives in a calendar month while working for any one employer, are wages subject to FICA, FUTA, and income tax withholding.
Once the amount of tips received in a calendar month reaches $20.00 from any one employer, the entire amount of tips received is included in wages, not just the amount over $20.00. An employee who receives $20.00 or more in tips must report those tips in writing to their employer by the tenth day following the month in which the tips are received.
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Page Last Reviewed or Updated: November 18, 2008