social security on tips

[oceanlovin'ea]

If a waitress is paid on a 1099 and not a W-2, would you include her tips in with the amount paid by the restaurant?
I was thinking I should put them on 4137 but since there was no W-2, it won't take it. It wants the name of the employer.

Linda

[BHoffman]

Oh, bleah. I think your waitress might be stuck with Sch C.

[S T]

Employer

Guess the employer figured out how to get out of their portion of the FICA and Mcare! Another one of those situations of improper reporting and NO we are not going to turn them in!

Agree with B Hoffman - Schedule C - would be no writeoffs EXCEPT - sometimes these "waitress people" pay busboy tips! If they have records, and usually not, mostly cash transactions. So you would need their tip records!

Sandy

[okie1tax]

8919

I thought this was where you would use the new Form 8919 to report the "employee's: portion of SS and Medicare.

[gkaiseril]

More than likely the employer has misclassified the waitress as an independent contractor. The employer probably purchased a book on how to reduce his taxes from some late night TV pitchman.

Look at form 8919 Uncollected Social Security and Medicare Tax on Wages http://www.irs.gov/pub/irs-pdf/f8919.pdf

And look at codes D - F.

D I was previously treated as an employee by this firm and am performing services in a substantially similar capacity and under substantially similar direction and control. (You must also enter reason code G.)

E My co-workers, performing substantially similar services under substantially similar direction and control, are treated as employees. (You must also enter reason code G.)

F My co-workers, performing substantially similar services under substantially similar direction and control, filed Form SS-8 for this firm and received a determination that they were employees. (You must also enter reason
code G.)

The client could also file and SS-8 and use Code G.

[oceanlovin'ea]

part time work

She is a waitress part time. Both places she has worked has paid her this way. Maybe they figure she is independent because she gets to pick the days she wants to work.

I will ask her if any of the other waitresses are paid as employees. I will bet they are all paid as IC.

The restaurant has been in business for many many years. Probably always done it the same way. She won't turn them in. She will just pay her taxes.

Her mother is my best friend and she is like my daughter. So you hate to see them taken advantage of. And they really are being taken advantage of. But they will just deal with it and pay their taxes. To have the ability to work the hours she wants to work on a part time basis, they are willing to pay the extra.

Linda