IRS Form 4070A Employee's Daily Record of Tips

What Is Form 4070A?

IRS Form 4070A, Employee's Daily Record of Tips is a form used by employees to keep track of tips they received from customers.

The most recent version of this form was issued by the Internal Revenue Service (IRS) in August 2005. IRS Form 4070A fillable version is available for download below.

The employees receiving tips at work must report them to their employer and in their tax return, including cash tips, tips, received from customers debit or credit cards and items of value, such as tickets or passes. All kinds of tips are considered income and are subject to federal income tax. The IRS tip reporting form does not require recording tips received in a form of an item of value, but they must be reported in the tax return.

IRS Form 4070 and 4070A

IRS Form 4070A can be used with the IRS Form 4070, Employee's Report of Tips to Employer. This form is used to report tips received in a month or any other period of time, as it is required by the employer. The daily record of tips is used to facilitate monthly tips report.

IRS Form 4070A Instructions

The employer requires tips reporting to withhold taxes from your paycheck properly and report the employee's earnings correctly to the Social Security Administration (SSA). Proper reporting of income will affect the benefits the employee will receive after retirement.

Using IRS Form 4070A is voluntary. If the employee desires, they can keep their own record of tips. This record must include their name and the name of their employer, the number of tips received in cash, added to debit and credit card charges and tips they paid to other employees through tip sharing. If the establishment uses an electronic system to record tips, the employees must keep a record on paper anyway.

If tips are not reported to the employer, this may lead to a penalty of 50% of the Social Security and Medicare taxes that are due on the unreported tips. However, the penalty can be avoided, if the employee can prove that they had a reasonable cause for non-reporting their tips.

Additional information and instructions for completing the IRS Form 4070A can be found in the IRS Publication 531.

  1. 1 to 5. Self-explanatory;
  2. Column A, Tips received directly from customers and other employees. Enter the number of tips you received in cash from customers or other employees;
  3. Column B, Credit and debit card tips received. Enter the amount of tips you received from debit and credit card charges;
  4. Column C, Tips paid out to other employees. Enter the amount of tips you paid to other employees through tip sharing, tip pooling or other arrangements;
  5. Column D, Names of employees to whom you paid tips. Enter the names of every employee you paid tips to, entered in the previous column;
  6. Calculate the subtotal for every page of the form;
  7. When you complete the daily records for a month, calculate the totals for each column and transfer the data to your monthly record.
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4070A
Employee’s Daily Record of Tips
Form
(Rev. August 2005)
OMB No. 1545-0074
This is a voluntary form provided for your convenience.
Department of the Treasury
See instructions for records you must keep.
Internal Revenue Service
Employee’s name and address
Employer’s name
Month and year
Establishment name (if different)
Date
Date
a. Tips received
b. Credit and debit
c. Tips paid out to
d. Names of employees to whom you
tips
of
directly from customers
card tips received
other employees
paid tips
rec’d
entry
and other employees
1
2
3
4
5
Subtotals
For Paperwork Reduction Act Notice, see Instructions on the back of Form 4070.
Page 1
4070A
Employee’s Daily Record of Tips
Form
(Rev. August 2005)
OMB No. 1545-0074
This is a voluntary form provided for your convenience.
Department of the Treasury
See instructions for records you must keep.
Internal Revenue Service
Employee’s name and address
Employer’s name
Month and year
Establishment name (if different)
Date
Date
a. Tips received
b. Credit and debit
c. Tips paid out to
d. Names of employees to whom you
tips
of
directly from customers
card tips received
other employees
paid tips
rec’d
entry
and other employees
1
2
3
4
5
Subtotals
For Paperwork Reduction Act Notice, see Instructions on the back of Form 4070.
Page 1
Date
Date
a. Tips received
b. Credit and debit
c. Tips paid out to
d. Names of employees to whom you
tips
of
directly from customers
card tips received
other employees
paid tips
rec’d
entry
and other employees
6
7
8
9
10
11
12
13
14
15
Subtotals
Page 2
Date
Date
a. Tips received
b. Credit and debit
c. Tips paid out to
d. Names of employees to whom you
tips
of
directly from customers
card tips received
other employees
paid tips
rec’d
entry
and other employees
16
17
18
19
20
21
22
23
24
25
Subtotals
Page 3
Date
Date
a. Tips received
b. Credit and debit
c. Tips paid out to
d. Names of employees to whom you
tips
of
directly from customers
card tips received
other employees
paid tips
rec’d
entry
and other employees
26
27
28
29
30
31
Subtotals
from pages
1, 2, and 3
Totals
1. Report total cash tips (col. a) on Form 4070, line 1.
2. Report total credit and debit card tips (col. b) on Form 4070, line 2.
3. Report total tips paid out (col. c) on Form 4070, line 3.
Page 4

Download IRS Form 4070A Employee's Daily Record of Tips

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