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- Cash
- Checks
- Credit Card charges
- Non-monetary gifts like a movie tickets, bus passes, or other goods
- Retain employee tip reports
- Withhold income taxes and the employee’s share of FICA taxes
- Pay employer’s share of FICA taxes
- File Form 941, Employer’s Quarterly Federal Tax Return along with federal deposits
- Include tip income on Form W-2, Box 1 (Wages, tips & other compensation), Box 5 (Medicare wages and tips) and Box 7 (Social Security tips)
- The operation is located in the 50 states or D.C.
- Food or beverages are provided for consumption on the premises, excluding fast food operations
- Tipping employees for food or beverages by customers is customary
- The employer normally employed more than 10 employees on a typical business day during the preceding calendar year
- Medicare
- FICA
- Social Security
- State taxes
- Your full legal name
- Your legal address
- The amount of your month’s tips
- Your employer’s name and address
- Your Social Security Number
- The month for when the tips were collected
- Your signature
- The date that the form was submitted
- After you write out these details, you should then give it to your employer or your human resource manager.