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Show Cash Tips Are Subject to Tax Roland V. Wise, District Dir. ector of Internal Revenue for Utah, pointed out thai every employee who receives cash tips of $20 or more in any calendar month while working for one employer, must report the amount of tips received during the month to that employer. em-ployer. Cash tips are subject to withholding of income and social security taxes and must bn reported to the employer on or before the 10th day of the following month. Tho Internal Revenue Service Ser-vice has available free of charge Document 5C35, "Employees' "Em-ployees' Daily R"cord of Tir) an-1 Report of Tips to Employer" Em-ployer" which explains briefly the requirements of the lav It also has a supnly of the forms needed to make the it-ces-ary renorts and provides snaco to record efH'h day's tips for twelve months. Mr. Wise emphasized that ti'i income counts toward social soc-ial security and railroad retirement retire-ment benefits and may result in higher benefits for the employee em-ployee and his family. |