Form 4070-A

What Is Form 4070 A

Form 4070 A is a document provided by the Internal Revenue Service (IRS) for employees who typically receive tips as part of their income. This form allows for the accurate reporting of tip income, which is essential for ensuring that correct taxes are paid on all earnings. It is a part of the payroll tax forms that employers in the service industry should be familiar with, as it helps employees maintain transparent and lawful financial practices.

When to Use 4070 A Form

The situations where an employee would use the 4070 A Form include:

• Employees who receive more than $20 per month in tips should use this form to declare their tip income to their employer.
• This form is necessary for tips received directly from customers, as well as those paid through credit cards and split among employees.
• Employees in ample food or beverage establishments where tipping is customary should record and report their tips using this form.
• Employees seeking to comply with the IRS standards for reported income fully must use Form 4070 A to maintain a daily record of tips received.

How To Fill Out Form 4070 A

Step 1: Personal and Employer Information

At the top of Form 4070-A, enter your full name and address in the field labeled "Employee’s name and address."

Fill in your employer's name in the space provided for "Employer's name."

Specify the month and year for which you are reporting tips in the field labeled "Month and year."

If applicable, provide the establishment name in the space provided if it's different from your employer's name.

Step 2: Daily Tip Recording

Enter the date of each day worked in the column labeled "Date."

In column "a," enter the number of tips you received directly from customers and other employees each day.

In column "b," record the amount of credit and debit card tips you received each day.

For column "c," list any tips you paid to other employees on each corresponding day.

For column "d," write the names of the employees to whom you paid tips for each particular date.

Step 3: Subtotals and Totals

Calculate the subtotals for columns "a," "b," and "c" for each page and enter them at the bottom in the "Subtotals" section.

Add the subtotals from all pages of Form 4070-A and calculate the grand totals for each column.

File your completed Form 4070-A and 4070 as per the guidelines provided by your employer, and remember that accurate tip reporting is necessary to ensure compliance with tax laws.