Tip income represents special payroll and reporting challenges for restaurant employers. Underreporting of tip income triggers a two-fold effect: inadequate withholding of the employee’s share of taxes and underpayment of the employer’s portion. Still, that’s just one side of the tip reporting coin. On the other side are requirements you must meet, such as minimum wage, tax withholding and tip allocation.
Growing your business means you’ve got a to-do list that multiplies, seemingly overnight. Let’s knock a few things off that list, with simple employer reporting guidelines based on employee counts and helpful links to corresponding forms.
1+ employee(s) and payroll tax reporting
Congratulations! You’re on your way. Here are all the basic federal payroll tax forms you’ll need to file if you have one or more employees. You can also review the 2016 IRS document “Employer’s Tax Guide” – if you dare.
Topics: Employer Basics