abctax55
Level 15
02-18-2022
04:51 PM
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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