Employee Tip Reporting Guide

The IRS requires employees to report all tips to their employer monthly if they receive $20 or more in tips. Employers must withhold FICA on reported tips. This guide covers the rules, Form 4070 requirements, and the FICA Tip Tax Credit for restaurant owners.

Monthly Tip Report Calculator (Employee)

Cash Tips Received ($)

Credit Card Tips Received ($)

Tips Paid Out to Others ($)

Hourly Wage Rate ($)

Hours Worked This Period

Total Tips Received$0

Tips Paid Out (deductible)-$0

Reportable Tips (Form 4070)$0

Est. FICA on Tips (7.65%)$0

Total Wages + Tips Income$0

FICA Tip Tax Credit (Employer — IRC §45B)

Total Reported Tips (annual) ($)

Min Wage Rate (federal: $7.25)

Tipped Employees' Hours (annual)

Actual Tipped Wage Rate ($)

Eligible Tip Wages (above min wage)$0

Employer FICA on Eligible Tips (7.65%)$0

Federal Tax Credit (dollar-for-dollar)$0

Form 4070 Deadline

Employees must submit tip reports by the 10th of the following month (e.g., January tips reported by February 10). Keep copies for 3 years.

Employer Obligations

Withhold federal income tax + employee FICA on reported tips. Employer pays matching FICA. File Form 941 quarterly. Large food/beverage establishments may need TRAC agreement.

This tool is for educational use only. Consult a CPA or tax advisor for your specific situation. Tax rules change — verify current rates at IRS.gov.