Small Business Services
Waiters - requirement to report tip income
Restaurants employing at least 10 people must make a special report to the IRS of income and allocated tips. Generally, the IRS assumes tip income of 8%. The allocated amount is shown on individuals W-2 as tip income.
Need Professional Help?
If you need help with "Small Business Services" or have other tax questions, we can help you find a local licensed tax preparer for a free, no-obligation consultation.