Editing Gratuity (section)

=====Employee taxation responsibilities=====
The IRS states that employees making income from tips have three main responsibilities.

# Keep a daily tip record.<ref name=":43">{{Cite web|title=Tip Recordkeeping and Reporting {{!}} Internal Revenue Service|url=https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting|access-date=2020-12-19|website=www.irs.gov|language=en}}</ref>
# Report tips to the employer, unless less than $20.<ref name=":43"/>
# Report all tips on an individual income tax return.<ref name=":43"/>

Tips should be reported to employers by the 10th of the month after the tips were received unless the 10th ends up landing on a weekend day or a legal holiday. In that case the tips should be reported on the next available day that is not a weekend or a legal holiday. If the employee does not report the tips earned to their employer the employer will not be liable for the employer share of social security and Medicare taxes on the unreported tips. Employers will also not be liable for withholding and paying the employee's share of social security and Medicare taxes.