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February 11, 2025
Question

How do servers deduct tip outs to bussers and bartenders on w2 and income.

  • February 11, 2025
  • 1 reply
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    1 reply

    KrisD15
    February 11, 2025

    If your employer reports the tip income on your W-2, give a copy of your tip log to your employer.

    If you report your tips, do not include the amount of tips you share. 

     

    According to the IRS:

    "If you participate in a tip-splitting or tip-pooling arrangement, report only the tips you receive and retain. Don't report on your income tax return any portion of the tips you receive that you pass on to other employees. However, you must report tips you receive from other employees."

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