Form 4070

What Is Form 4070: Employee's Report of Tips to Employer?

Form 4070: Employee's Report of Tips to Employer is a tax form distributed by the Internal Revenue Service (IRS). Employees who receive tips from their customers utilize this form to report their tip income to their employers. Tips can be earned with cash straightforwardly from customers, a tip-sharing program, as well as those received through credit or debit cards.

Who Can File Form 4070?

Form 4070: Employee's Report of Tips to Employer is filed by employees who are compensated by tips. Any tips earned more than $20 each month must be reported. These must be submitted in their report by the 10th day of the next month, except if that day is a holiday or end of the week. Daily tips are arranged on Form 4070A, which is made sense of below.

Step by step instructions to File Form 4070

The form must contain the employee's name, address, Social Security number, the month covered by the report, and the total amount of tips received. It must likewise contain the employer's name and address. In the wake of finishing up the report, the employee must sign it.

Rather than presenting the real form, employees might present a substitute document that contains the entirety of this information.

Special Considerations for Form 4070

An employer must ensure the total income they report for a given period is at least 8% of their total receipts for that time. Not all receipts must be remembered for this calculation. For instance, do sales and sales that incorporate a service charge of something like 10% are not counted.

Assuming the amount of tips reported by employees is under 8% of receipts, the employer must distribute the difference between the reported tip income and 8% of the receipt gross.

Other Relevant Forms

Form 4070 is a month to month summary of all tips received and is utilized related to form 4070A. This form permits employees to keep track of tips received consistently. It likewise permits employers to ascertain the amount of tax they must keep from employees. Employers are required to keep federal income, Social Security and Medicare taxes on employee tip income. These taxes can be kept through the employee's wages or through another method.

Employers that run food and refreshment businesses in the U.S. must file Form 8027 in the event that tipping is customary at their foundations and assuming they utilize in excess of 10 workers on a regular business day. Guidelines for Form 8027 give a worksheet to assist employers with deciding whether they meet the 10-employee test.

Download Form 4070: Employee's Report of Tips to Employer

You can download a copy of Form 4070: Employee's Report of Tips to Employer from the IRS website.

Features

• Form 4070 is utilized by employees who are compensated by tips to report those tips to their employers.
• Employees document their daily tips on Form 4070A.
• Any tips earned more than $20 each month must be reported on the form, which must be put together by the 10th day.