IRS Publication 531

DEFINITION of 'IRS Publication 531'

A document published by the Internal Revenue Service (IRS) that details how employees who have received tips as part of their compensation are to report that income for tax purposes. All tips received are subject to federal income tax, regardless of whether they are received directly from an employer or through a tip-sharing arrangement with other employees. Tips should be reported to the employer every month if more than $20 in tips have been received.

BREAKING DOWN 'IRS Publication 531'

Employees should use Form 4070A when reporting tips to an employer, which they can receive by requesting IRS Publication 1244 from the IRS or their employer. Publication 1244 contains a year's supply of Form 4070A.


Rules for tip income reporting are different than rules concerning reporting for bonuses and gambling.

RELATED TERMS
  1. Form 4070: Employee's Report Of ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  2. IRS Publication 1244: Employee's ...

    A document published by the Internal Revenue Service (IRS) that ...
  3. Form 4070A: Employee's Daily Record ...

    A tax form distributed by the Internal Revenue Service (IRS) ...
  4. IRS Publication 15 - Employer's ...

    A document published by the Internal Revenue Service detailing ...
  5. Tip Income

    Income that a service professional earns that is not part of ...
  6. Treasury Inflation Protected Securities ...

    A treasury security that is indexed to inflation in order to ...
Related Articles
  1. ETFs & Mutual Funds

    2 Popular Inflation Protected "TIPS" Bond ETFs in 2016 (TIP, IPE)

    Learn about how Treasury Inflation Protected Securities (TIPS) work, and discover two of the more popular ETFs that invest in TIPS.
  2. ETFs & Mutual Funds

    Using the TIPS Spread to Predict Inflation (TIP, ATPIX)

    Learn how analysts and investors use the TIPS spread to forecast inflation rates, and how accurate the TIPS spread has been as an inflation predictor.
  3. Retirement

    Employers: Don't Forget IRS Form 941

    Your obligations as an employer include various employment taxes. Use this form to report them.
  4. Investing

    Why the TIPS Rally Might Not Be Real

    The influx of money into TIPS that ended in April is probably not an indicator that real inflation is on the horizon.
  5. Managing Wealth

    Introduction To Treasury Inflation-Protected Securities (TIPS)

    If you want to protect your portfolio from inflation, all you need are a few TIPS.
  6. Retirement

    3 Reasons to Stay Away From TIPS

    Learn three reasons why you should avoid investing in Treasury inflation-protected securities (TIPS) and why bondholders are better off with other vehicles.
  7. Investing

    Inflation Protected Securities: How They Work

    Learn how the U.S. Treasury inflation-protected securities (TIPS) work, which considerations investors should keep in mind and for whom TIPS are most suitable.
  8. Financial Advisor

    Life Insurance Plans to Help Your Small Business Retain Employees

    How to use and design cash value life insurance plans as an incentive to help attract and retain key employees.
  9. Markets

    Why Some Investors Are Tilting Toward TIPS

    Last month’s five-year TIPS auction drew nearly $48 billion in interest, a sign of recent renewed demand for this inflation indexed asset among investors.
  10. ETFs & Mutual Funds

    The 4 Best Inflation-Protected Funds To Invest In (SCHP)

    Discover how Treasury inflation-protected securities (TIPS) work, and learn about five funds in this segment that make good investments.
RELATED FAQS
  1. Will a 10-99 form make my taxes higher?

    My employer is not withholding taxes each pay day. Will this increase my taxes because they will give ... Read Answer >>
  2. What is IRS Form W-2 used for?

    Any employer who pays an employee $600 or more for the year, including noncash forms of remuneration, must file a form W-2 ... Read Answer >>
  3. For tax return purposes, is a savings account considered income?

  4. Can LLCs have employees?

    Discover how limited liability corporations (LLC) can have an unlimited number of employees and the legal steps required ... Read Answer >>
  5. What does the IRS say about what constitutes taxable income?

    Find out what the Internal Revenue Service, or IRS, considers to be taxable income and nontaxable income, including value ... Read Answer >>
  6. What's the average hourly wage of waiters and bartenders before tips

    Learn how much per hour waiters, bartenders and other tipped employees make before tips under federal and state minimum wage ... Read Answer >>
Hot Definitions
  1. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  2. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  3. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  4. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  5. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
  6. Brexit

    The Brexit, an abbreviation of "British exit" that mirrors the term Grexit, refers to the possibility of Britain's withdrawal ...
Trading Center