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Cash tips your employee receives from customers are generally subject to withholding. Your employee must re-port cash tips to you by the 10th of the month after the month the tips are received. Cash tips include tips paid by cash, check, debit card, and credit card. The report should include tips you paid over to the employee for charge customers, tips the employee received directly from customers, and tips received from other employees under any tip-sharing arrangement. Both directly and indirectly tipped employees must report tips to you. No report is required for months when tips are less than $20. Your employee reports the tips on Form 4070 or on a similar statement. The statement must be signed and dated by the employee and must include:

\u2022  The employee's name, address, and SSN;

\u2022  Your name and address;

\u2022  The month and year (or the beginning and ending dates, if the statement is for a period of less than 1 calendar month) the report covers; and

\u2022  The total of tips received during the month or period.

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