26 U.S.C. § 6053: Reporting of tips

Every employee who, in the course of his employment by an employer, receives in any calendar month tips which are wages (as defined in section 3121(a) or section 3401(a)) or which are compensation (as defined in section 3231(e)) shall report all such tips in one or more written statements furnished to his employer on or before the 10th day following such month. Such statements shall be furnished by the employee under such regulations, at such other times before such 10th day, and in such form and manner, as may be prescribed by the Secretary. If the tax imposed by section 3101 or section 3201 (as the case may be) with respect to tips reported by an employee pursuant to subsection (a) exceeds the tax which can be collected by the employer pursuant to section 3102 or section 3202 (as the case may be), the employer shall furnish to the employee a written statement showing the amount of such excess. The statement required to be furnished pursuant to this subsection shall be furnished at such time, shall contain such other information, and shall be in such form as the Secretary may by regulations prescribe. When required by such regulations, a duplicate of any such statement shall be filed with the Secretary. The gross receipts of such establishment from the provision of food and beverages (other than nonallocable receipts). The aggregate amount of charge receipts (other than nonallocable receipts). The aggregate amount of charged tips shown on such charge receipts. the aggregate amount reported by employees to the employer under subsection (a), plus the amount the employer is required to report under section 6051 with respect to service charges of less than 10 percent. With respect to each employee, the amount allocated to such employee under paragraph (3). The name and address of such employer. The name of the employee. The amount allocated to the employee under paragraph (3) for all payroll periods ending within the calendar year. 8 percent of the gross receipts (other than nonallocable receipts) of such establishment for the payroll period, over the aggregate amount reported by such employees to the employer under subsection (a) for such period. on the basis of a good faith agreement by the employer and the employees, or in the absence of an agreement under clause (i), in the manner determined under regulations prescribed by the Secretary. Upon the petition of the employer or the majority of employees of such employer, the Secretary may reduce (but not below 2 percent) the percentage of gross receipts required to be allocated under subparagraph (A) where he determines that the percentage of gross receipts constituting tips is less than 8 percent. which provides food or beverages, with respect to which the tipping of employees serving food or beverages by customers is customary, and which normally employed more than 10 employees on a typical business day during the preceding calendar year. The employer shall not be liable to any person if any amount is improperly allocated under paragraph (3)(B) if such allocation is done in accordance with the regulations prescribed under paragraph (3)(B). carryout sales, or services with respect to which a service charge of 10 percent or more is added. The Secretary shall prescribe regulations for the application of this subsection to new businesses. For purposes of any report required by this subsection, in the case of a certified professional employer organization that is treated under section 3511 as the employer of a work site employee, the customer with respect to whom a work site employee performs services shall be the employer for purposes of reporting under this section and the certified professional employer organization shall furnish to the customer and the Secretary any information the Secretary prescribes as necessary to complete such reporting no later than such time as the Secretary shall prescribe. The amendments made by this section [amending this section and sections 6001 and 6678 of this title, and enacting provisions set out as a note under this section] shall apply to calendar years beginning after December 31, 1982 . amounts described in subparagraphs (A), (B), (C), and (D) of section 6053(c)(1) of such Code, and the name, and identification number, wages paid to, and tips reported by, each tipped employee.”