All employees who receive tips from customers must report the amount for each pay period.
Applies to: All employees
Employees who work in positions where they receive tips directly from customers must report the amount of tips received each pay period. Dartmouth is responsible for withholding income taxes and FICA taxes on reported tips as well as paying the employer portion of FICA and FUTA taxes on those earnings. In some cases, employees are allowed to voluntarily pool their tips. In cases where employees are allowed to voluntarily pool their tips, Dartmouth will process the withholdings and FICA and FUTA contributions based on the arrangement.
Definitions or Regulations:
Code of Federal Regulations Title 29, Chapter I, Subchapter C, Part 31.3401(d)-1 Tips (26 CFR 31.3401(f)-1)