Inaccurate employer tip reporting...tax fraud

Question

I am a tipped employee. I made (and accurately reported) $100.00 in tips during the two week pay period.

The tip figure on my check is saying that I reported $200, which I know for a fact I didn't make that much in tips for the two week period.

Is this tax fraud by the employer?

Answer 1

Not likely tax fraud by the employer - they'd have nothing to gain by that, and in fact owe MORE tax themselves if tips are higher since they are paying a match for social security and medicare on the additional amount.

Did you ask your employer why the amount on your check was higher than you reported?  That would be the place to start.

If the total tips reported to your employer are less than a certain percentage of their gross sales (8 pct?) the employee is required to "allocate" tips among the tipped employees.  That might be what happened.