<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=690758617926394&amp;ev=PageView&amp;noscript=1">
The Complete Payroll Blog

IRS Form 4070 | Employee's Report of Tips to Employer

Posted by Complete Payroll | Jul 10, 2017 11:21:32 AM

IRS Form 4070 - Employee's Report of Tips to Employer.png

When employees earn less than $20 in tips, they are not required to report their tips to their employer for that month. However, when the total tips are greater than $20, employees must report tips monthly to their employer. This is done by filing IRS Form 4070, Employee's Report of Tips to Employer, or a similar statement with their employer.

How to file the IRS Form 4070

These statements must include:

  • The employee's name, address and Social Security number.
  • The month or period the report covers.
  • The total tips received for the month.

According to the IRS, businesses must collect Social Security tax, income tax and Medicare tax from the tips employees report. These can be collected from employees’ wages or from other funds employees make available.

Large food or beverage businesses

Large food or beverage businesses are required to file a different form with the IRS — Form 8027, Employer’s Annual Information Return of Tip Income and Allocated Tips. To be considered large, a food or beverage business must meet all of the following:

  • Food or beverage is provided for consumption on the premises.
  • Tipping is a customary practice.
  • More than 10 employees, who worked more than 80 hours, were normally employed on a typical business day during the preceding calendar year.

More information on employee tipping requirements is in IRS Publication 1244, Employee's Daily Record of Tips and Report to Employer.

Also, click here to get a downloadable copy of IRS Form 4070.

Payroll for Restaurants Guide

Finally, we published a resource specifically for restaurant managers and employers. Download our Payroll for Restaurants Guide for a detailed (but simple) list of everything you and your employees should know and do when it comes to recording tips, filing taxes and staying compliant.

New Call-to-action

You can also check out our comprehensive resource page on Payroll for Restaurants, which explains all of the essential components and considerations along with links to government forms, helpful articles and other resources.

Topics: Taxes, Employees

Written by Complete Payroll

We do payroll, HR, timekeeping and more for employers all over the country from a small, rural town in Upstate New York. And we're constantly publishing articles and other resources to help business owners, HR managers or anyone that helps manage a workforce. Welcome to Payroll Country!

Are you using our free resources?

We're constantly publishing free tools to help with payroll, HR and other administrative objectives.

Complete COVID-19 Resources for Employers
New Call-to-action

Subscribe to instant blog email notifications

Recent Posts

General Disclaimer

The materials and information available at this website and included in this blog are for informational purposes only, are not intended for the purpose of providing legal advice, and may not be relied upon as legal advice.  The employees of Complete Payroll are not licensed attorneys. This information and all of the information contained on this website are provided pursuant to and in compliance with federal and state statutes. It does not encompass other regulations that may exist, including, but not limited to, local ordinances. Complete Payroll makes no representations as to the accuracy, completeness, currentness, suitability, or validity of the information on this website and does not adopt any information contained on this website as its own. All information is provided on an as-is basis.  Please consult an attorney to obtain advice with respect to any particular question or issue.