IRS Publication 1244: Employee's Daily Record of Tips and Report to Employer

AAA

DEFINITION of 'IRS Publication 1244: Employee's Daily Record of Tips and Report to Employer'

A document published by the Internal Revenue Service (IRS) that details how employees are to keep track of and report income earned from tips. Tip income can come in the form of cash, credit or debit card adjustments to a bill or tip-sharing agreements with fellow employees. If an employee earns more than $20 in tips during a month, that employee is responsible for reporting the tip total to the employer. Employers are still responsible for withholding money for Social Security, Medicare and income tax.

INVESTOPEDIA EXPLAINS 'IRS Publication 1244: Employee's Daily Record of Tips and Report to Employer'

IRS Publication 1244 contains both Form 4070 and Form 4070A - two forms used by employees to report income earned from tips. Form 4070 is used to report the tip total for the month, while Form 4070A is used to keep track of tips on a daily basis. Employees should request IRS Publication 1244 in order to receive the appropriate forms.

RELATED TERMS
  1. IRS Publication 531

    A document published by the Internal Revenue Service (IRS) that ...
  2. Tip Income

    Income that a service professional earns that is not part of ...
  3. Withholding Tax

    1. Income tax withheld from employees' wages and paid directly ...
  4. Base Pay

    An employee's initial rate of compensation, excluding extra lump ...
  5. Ex Gratia Payment

    A payment made to an individual by an organization, government, ...
  6. Good Student Discount

    An auto insurance policy discount available to young drivers ...
RELATED FAQS
  1. How is market value determined in the real estate market?

    Anyone who has ever tried to purchase or sell a home has probably heard a lot about the property's fair market value, or ... Read Full Answer >>
  2. How does the role of Medicare/Medicaid affect the drugs sector in the U.S.?

    Medicare and Medicaid have enormous influence on the pharmaceutical, or drugs, sector in the United States. For instance, ... Read Full Answer >>
  3. In what instances does overhead qualify for certain tax allowances?

    Businesses are just as keen as anyone else to keep their tax burdens low by any means possible. Overhead expenses often qualify ... Read Full Answer >>
  4. What are the ethical arguments against government subsidies to companies like Tesla?

    The ethical argument behind government subsidies is that they should be put into place to help industries that will, in turn, ... Read Full Answer >>
  5. How can tariffs cause inefficiencies in domestic industries?

    Any government regulation naturally creates inefficiencies in a pure supply and demand marketplace. When it comes to the ... Read Full Answer >>
  6. How are write-offs recorded on my tax return?

    The way your write-offs are recorded on your tax return varies depending on whether you are filing a personal or business ... Read Full Answer >>
Related Articles
  1. Taxes

    How To Appeal Your IRS Audit

    The auditor's review isn't always the last word. Many taxpayers who are audited can successfully appeal their audits and save thousands of dollars.
  2. Taxes

    Inaccurate Tax Return, Now What?

    If the IRS finds errors, it will cost you. Find out how to fix them, and how to prevent them in the first place.
  3. Taxes

    How To Report A Tax Cheat

    If you report a tax evader to the IRS, you could be eligible for a reward.
  4. Taxes

    Surviving The IRS Audit

    Keeping thorough records and knowing the penalties make this experience easier than you'd expect.
  5. Options & Futures

    How To Owe Nothing On Your Federal Tax Return

    You have the control to determine whether you owe in April. Learn more here.
  6. Taxes

    The History Of Taxes In The U.S.

    The number of taxes that we now consider a given did not always exist. Find out how they arose.
  7. Economics

    Global Impact of China's Geopolitical Strategy

    China's geopolitical strategy is shifting the status quo from the Pacific to the Pentagon. Can the U.S. keep pace with Chinese military innovation?
  8. Economics

    3 Possibilities If Sanctions Against Iran Lift

    What would happen if sanctions against Iran were lifted?
  9. Taxes

    Are You Paying Too Much in Taxes?

    Overpaying taxes amounts to an interest-free loan to the government. Here are some ways to avoid that scenario.
  10. Professionals

    What Does an Auditor Do?

    An auditor ensures that organizations maintain accurate and honest financial records.

You May Also Like

Hot Definitions
  1. Nuncupative Will

    A verbal will that must have two witnesses and can only deal with the distribution of personal property. A nuncupative will ...
  2. OsMA

    An abbreviation for Oscillator - Moving Average. OsMA is used in technical analysis to represent the variance between an ...
  3. Investopedia

    One of the best-known sources of financial information on the internet. Investopedia is a resource for investors, consumers ...
  4. Unfair Claims Practice

    The improper avoidance of a claim by an insurer or an attempt to reduce the size of the claim. By engaging in unfair claims ...
  5. Killer Bees

    An individual or firm that helps a company fend off a takeover attempt. A killer bee uses defensive strategies to keep an ...
  6. Sin Tax

    A state-sponsored tax that is added to products or services that are seen as vices, such as alcohol, tobacco and gambling. ...
Trading Center
×

You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!