Waitress W2

[BHoffman]

I think I can't find the answer because the question is so basic.

I have here a W2 from a gal who worked for a Pizza Inc. She was a tipped employee.

Box 1... 10,000 Wages, tips
Box 2....... 900 FWH
Box 3..... 7,000 SS wages
Box 4........ 434 SS WH
Box 5.... 10,000 Med wages
Box 6........ 145 Med WH
Box 7...... 3,000 SS Tips

There are no amounts in box 12

Seems like Client should pay SS tax on the amount in Box 7, but I don't know where to put it. Can some kind and patient person help me out with this? I admit this is my first tipped client. This has to be so simple.

Thank you very much.

[snowshine]

form 4137 should do the trick, although her tips are reported. That's a weird amount of SS to withhold -- it is the correct amount for neither box 1 nor box 7. Box 7 wages are normally in box 3 and 5 too... Something tells me the bookkeeping firm needs help

[BHoffman]

Thanks for responding.

I think the SS WH is correct for the amount shown in box 5: 7000 x .062 = 434

Form 4137 doesn't seem like the right way to go.

Still looking for an answer.

I experimented and put the $3000 in box 12 (a). This gets what I think should be the correct tax onto the return. However, there is no amount listed in box 12 on the W2.

[Jesse]

Maybe check with the employer to see if there is an error on the W-2 or possibly the employer has not been withholding the correct amount?

[BHoffman]

Thanks Jesse. I think the only problem with the W2 is that no amount is shown in box 12 code A. But I'm not sure.

[erchess]

Be Careful

about keying in a W2 differently from what the paper form says. You can get in a lot of trouble that way.

[ChEAr$]

IF you have good software

simply keying in the appropriate W2 information will automatically generate the form
4137 which is needed since employer did not withhold appropriate social security or
medicare tax.

[BOB W]

I think I can't find the answer because the question is so basic.

I have here a W2 from a gal who worked for a Pizza Inc. She was a tipped employee.

Box 1... 10,000 Wages, tips
Box 2....... 900 FWH
Box 3..... 7,000 SS wages
Box 4........ 434 SS WH
Box 5.... 10,000 Med wages
Box 6........ 145 Med WH
Box 7...... 3,000 SS Tips

There are no amounts in box 12

Seems like Client should pay SS tax on the amount in Box 7, but I don't know where to put it. Can some kind and patient person help me out with this? I admit this is my first tipped client. This has to be so simple.

Thank you very much.

Look again at box 4 on the w-2 and compare it with your computer screen for box 4. Screen must match W-2. W-2 probably says $620. If so, put $620 in computer for box 4.

[ChEAr$]

The business is

Look again at box 4 on the w-2 and compare it with your computer screen for box 4. Screen must match W-2. W-2 probably says $620. If so, put $620 in computer for box 4.

a pizza shop, a business which usually doesn't bother with such niceties as proper tip
reporting.

I'm betting at year's end the W2 preparer asked for the information so that the W2
could be properly prepared.

[BOB W]

a pizza shop, a business which usually doesn't bother with such niceties as proper tip
reporting.

I'm betting at year's end the W2 preparer asked for the information so that the W2
could be properly prepared.

The W-2 was completed wrong and the additional $186 needs to be paid by the taxpayer or have the employer correct the W-2.

[WhiteOleander]

Box 7: Social Security tips. Box 7 reports the amount of tip income that you reported to your employer. If you did not report tips to your employer, you will not have an amount in this box. The amounts in Box 7 and Box 3 should add up to the amount in Box 1, or the $90,000 maximum wage limit for Social Security taxes.

Box 7 shows the amount of tips reported by employees. In many situations, the cash wages paid are insufficient to collect the entire amount of social security and Medicare tax. Reported tips must still be shown in this box, even if social security or Medicare tax was not withheld on them. For 2008, the combined total of Boxes 3 and 7 cannot exceed $102,000. The reported tips should be included with amounts reported in Box 1, wages, tips, other compensation and Box 5, Medicare wages and tips. Since social security benefits are based on the amount of social security tips reported to the Social Security Administration (SSA), it is important that employees periodically review their social security earnings record and provide the SSA with the Form W-2 to update any incorrectly posted earnings records


I found these paragraphs from differnts sites when I googled.

This is from the general instructions for W-2, W-3's on the IRS site.

Box 7—Social security tips. Show the tips that the employee reported to you even if you did not have enough employee funds to collect the social security tax for the tips. The total of boxes 3 and 7 should not be more than $102,000 (the maximum social security wage base for 2008). Report all tips in box 1 along with wages and other compensation. Include any tips reported in box 7 in box 5 also.

[BHoffman]

I checked my data entry and it is correct. Still wondering what to do. Thanks for posts.

[JG EA]

I don't think you have to do anything except report the SS and Med as shown on the W-2. If too much was reported the employee should ask for a refund because too much was taken from their check. If too little was taken from their net check then the employer accidentally paid too much when filing 941's or the like. The employee has nothing to pay to the IRS, it has been paid already.

[Gene V]

I hate to say this, but I’ve been getting W2’s like this for years, never anything in box 12, I just been entering numbers as they appear on the W2-client has never paid any additional tax. I don’t do payroll—so don’t know if this is proper reporting.

[BHoffman]

I think you are correct. However, I'm wondering if this is the result of any error or not. I don't think so. I think the employee reported tips to the employer, and the actual paid wage amount was insufficient to cover the SS withholding.

I figured this was some easy and common thing that you all had seen a million times!