'cash' tips, it is no wonder that they are reluctant to fully report this Since most tippedĮmployees may receive a significant amount of their income in the form of Report and pay taxes on all their wages including tips. The bottom line is this… restaurant employees are required to Should therefore be aware of your responsibilities regarding the reporting of Income and FICA (Social Security & Medicare) tax. Restaurant owners! This is truer today than a decade ago as the IRS isĪccelerating its efforts to capture previously lost revenue in the form of IRS tip reporting rules is one of the most critical and important tasks facing As if the restaurant business was not hard enough, complying with
