Tip Reporting
August 5, 2010 9:59 PM   Subscribe

You Are Not My Accountant/Lawyer/Whatever. But, do you have any answers or could you point me in the right direction of a resource that could answer the following question regarding tipped service staff in the state of Florida?

An employer I know reports full tips, cash and credit cards and in turn the service staff at their establishment pays full appropriate tax on all tips. Most establishments I've heard of report only a minimum (something like 20% of credit card tips) and thusly pay their end of the social security, etc. on that lowest allowed amount.

I know there is a minimum requirement for a business to report that their servers make and beyond that minimum it is the servers' responsibility to report their earnings to the government come tax time.

My specific question is, what is that minimum requirement for the business to report and what resources, other than an accountant, might I find online to back this info up?

Thank you for your time!!
posted by sarelicar to Law & Government (1 answer total)
2009 Instruction 8027 appears to be the answer. Found as the first result of site:irs.gov wait staff restaurant tipping.
posted by WCityMike at 10:17 PM on August 5, 2010 [1 favorite]

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