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Level 2
June 6, 2019
Question

Pizza delivery driver

  • June 6, 2019
  • 4 replies
  • 25 views

My payroll summary report from jan 1 2017 to dec 31 2017 shows how much in reported tips I earned but also Compensation (delivery fee, I receive $1.50 for each delivery) totaling $12,000 for both. Do I report compensation along with the tips? 

    4 replies

    Carl
    Level 11
    Level 11
    June 6, 2019
    You are required to report all income received from all sources in 2017, on your 2017 tax return.
    June 6, 2019
    deleted-see answer
    June 6, 2019

    You would not just add them together.  You should receive a W-2 because the company would withhold tax on the pay per delivery and the tips would be in a separate box on the W-2 in Box 12 with a code of A.  This entry indicates the employer did not withhold social security or medicare on your tips and that tax would have to be paid when you file your return.

    If you receive a 1099-MISC from the pizza company, you could add them together because you pay social security and medicare on ALL the net profit from your self-employment income.


    Don't file until you know if your employer is sending you a W-2 or a 1099-MISC

    Level 2
    June 6, 2019
    I will receive a w2 but even from the last 2 w2s I received there is nothing in box 12 just in boxes 1 thru 6. never received a 1099
    June 6, 2019

    If your employer is including your tips in Box 1, then they are already withholding social security and medicare tax for you and you won't have to pay that when you file.