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New Member
posted Apr 12, 2025 1:42:30 PM

Tips

My employer has two locations, and a different company name for each, so separate W-2 forms. 

On one of them they put the tips in allocated tips (box 8), and the other tips in the social security tips (box 7)

 

All of the tips go through the employer. What I'm reading is one box is reported and the other one unreported? But how can any of the tips be unreported if they all go through the employer?

 

Do I need a modified W-2 to fix this?

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1 Replies
Expert Alumni
Apr 12, 2025 1:52:53 PM

Allocated tips are tips that your employer allocates to you because your reported tips are less than 8% of your food and drink sales, among other criteria. Allocated tips are required by the IRS in certain cases, so it can't be removed with a corrected W-2. You're required to pay tax on this amount unless you have records showing that you received less tips than what's shown.