tips and employers

Hello,
As many of you know I started delivery this week. I have kept track of my employees tips so far. How do these need to be reported? Do I report them, does the driver? Thanks!

Check out the IRS Circular E, it has some basic information about tips:

There are other specific forms & things on www.irs.gov - do a search on “tips” on the site.

Edit: I would have linked the reporting forms, but my browser keeps locking up every time I try and open up a .pdf file today. :frowning:

The important thing to remember is that the FICA taxes you match on your employees tips (above minimum wage) come back to YOU (the employer) as a tax credit! Be sure to ask you tax accountant about this one - it’s big.