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Persons who receive cash tips should know that they count for Social Security credit, Bruce A. Hundley Social Security manager in Culpeper, said recently.
‘‘People who work in a variety of jobs—such as waiters and waitresses, and barbers and beauticians, for example—are earning important Social Security credit with their tips.” Hundley said. “Many of them don’t realize that these tips mean higher benefits for themselves and their families later on.”
Not all tips can be counted for Social Security purposes. Cash tips must amount to at least $20 a month while working for one employer. Furthermore, tips other than cash, such as merchandise, do not count.
An employee’s wages and tips ar<* reported by his or her employer each year to the
92.2%