Gitca

[FRAZZLED]

Client works at a gaming establishment as a waitress that is in the GITCA program. Her W2 shows SS tips of over $6000. She has written record of her tips showing around $3500. Does she have to claim the W2 info or can she claim only what she has recorded. If so what form do I use? Thanks Frazzled

[jainen]

on a daily basis

>>W2 shows SS tips of over $6000<<

Gaming clubs are scrutinized by every agency including the IRS, so lacking other evidence I would assume they are filing the W-2 correctly. Social Security Tips (Box 7) shows the amount actually reported to the employer on a daily basis.

[ChEAr$]

tips

Many restaurants pool tips and divide among employees and helpers. It is these
tips which are reflected on the W2 form.

However, if employee did not turn in that 3500 in tips and that is truly in addition to
the W2 amounts, then there is additional income AND added FICA taxes to be
reported.

[taxmandan]

Gitca

Our local tribal casino entered into a GITCA with theIRS and it says the employees shall report the amounts that are on the W-2 which is calculated according the the Agreement the tribe made with theIRS. For that, theIRS agreed not to audit the employees for three years. My take on it is they have to include the amount on the W-2 regardless of what their actual tips were, even with a daily record. The rate negotiated was 15.25% of income.

[jainen]

a typical agreement

>>employees shall report the amounts that are on the W-2 which is calculated according the the Agreement<<

This sounds like a typical agreement for allocated tips. These are shown on the W-2 in box 8, unless the reported tips (box 7) are higher.