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posted Mar 7, 2022 1:40:19 PM

Please explain box 7 (social security tips) on my W2...

Last year, I worked for one restaurant as a salaried employee. I received the same amount of money every week, and I did not receive any income from tips. Why does my W2 say that I have +$800 in social security tips? Is my employer doing something shady?

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1 Replies
Expert Alumni
Mar 7, 2022 1:56:54 PM

It depends. The employer designated so much of your salary as tips which is normal for a tipped employee.  The regular wages are in box 1, and then the social security tips in Box 7 plus the social security wage in Box 3 should equal Box 1, total wages.  It doesn't change anything on your tax return.

 

If you have allocated tips in Box 8, then those are considered tips that were not reported based on a formula of minimum tip requirements by the IRS.

 

If you see a number there then you are not required to report tips you did not receive.  Should this be the case, then I would send your return by mail and remove the allocated tips and explain by a statement with the return, that you were not receiving any tips.  Keep your payroll records and any contract you may have.