abctax55
Level 15

EmployERs can get a credit for the SS tax the employER pays on reported tips included in payroll.

Maybe your *friend* is thinking of something like that?

But the employee pays tax on the tips received/allocated.  If there's a sharing agreement, then that is addressed by the employer before amounts are included on the W-2.

Perhaps a conversation with between the employee & employer is in order.

HumanKind... Be Both
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