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Cash Tip Income

Subject To Taxing

Employees who receive cash tips of $20 or more in any calendar month, while working for one employer, must report the amount of tips received to that employer.

James P. Boyle, District Director of Internal Revenue for Virginia, pointed out that cash tips are subject to withholding of income and Social Security taxes ind must be reported to the jmployer on or before the 10th lay of the following month.

The Internal Revenue Service las available free of charge Document 5635, “Employee’s Daily Record of Tips and Report af Tips to Employer,” which explains briefly the requirements af the law and the forms needed to make the necessary report. Mr. Boyle emphasized that tip income counts toward Social !

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