Anybody happen to remember what the deal is on restaurant tips?
I got in a W-2 like this yesterday:
Box 1: Wages, tips, other comp - 8,129.69
Box 2: Federal income tax withheld - 553.25
Box 3: Social security wages - 3232.49
Box 4: Social security tax withheld - 504.04
Box 5: Medicare wages and tips - 8129.69
Box 6: Medicare tax withheld - 117.87
This has got to be wrong because box 4 (504.04) is figured on the box 1 total (8129.69 X .062=504.04) rather than on 3232.49 which would be 200.42. Don't know if it's intentional or what--looks like the keypuncher did a manual override to reduce box 3 and let box 4 stand as it was computer calculated. Don't know what SS got turned in for her.
But anyway, isn't this backwards? I was thinkin' that in restaurants with ten or more employees, they assigned them a certain amount tips regardless of what they turned in to the owner. Then that amount was added to the regular box 1 figure and put in box 3 as SS wages making it more than box 1, not less. Is that right?
I got in a W-2 like this yesterday:
Box 1: Wages, tips, other comp - 8,129.69
Box 2: Federal income tax withheld - 553.25
Box 3: Social security wages - 3232.49
Box 4: Social security tax withheld - 504.04
Box 5: Medicare wages and tips - 8129.69
Box 6: Medicare tax withheld - 117.87
This has got to be wrong because box 4 (504.04) is figured on the box 1 total (8129.69 X .062=504.04) rather than on 3232.49 which would be 200.42. Don't know if it's intentional or what--looks like the keypuncher did a manual override to reduce box 3 and let box 4 stand as it was computer calculated. Don't know what SS got turned in for her.
But anyway, isn't this backwards? I was thinkin' that in restaurants with ten or more employees, they assigned them a certain amount tips regardless of what they turned in to the owner. Then that amount was added to the regular box 1 figure and put in box 3 as SS wages making it more than box 1, not less. Is that right?
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