Tax codes can be highly confusing, particularly for service workers seeking the proper method of claiming tips on their taxes. To this end, securing the services of a qualified tax consultant is essential to ensuring your return is free of errors and omissions. In Litchfield, CT, Dianne M. Saunders, CPA is the obvious choice for clients in search of a seasoned tax professional. Serving the local community as a tax consultant since 1992, Saunders brings an expansive knowledge of the tax codes to the table, in addition to the type of personalized attention necessary to create lasting client relationships.

Service workers who make over $20 per month in tips are required to reports these earnings on their taxes, including both cash tips as well as those added to charges paid via credit card. Other types of workers who earn tips, such as hair stylists, performers, cab drivers, etc. are subject to the same rules when it comes to reporting tips.

Employers are also beholden to certain tax regulations for reporting tips. This entails collecting taxes (Medicare, Social Security, and income tax) on those tips reported by employees. Additionally, employers must make certain that the total amount of tip income an employee claims over a single pay period equals at least 8% of the total amount of receipts. This percentage should not include carry out purchases, or any service charges added to bills at the discretion of the employer.

In addition to her work as a skilled tax consultant, Dianne M. Saunders, CPA also offers Litchfield residents assistance with estates and trusts, business consulting, and many other vital accounting services. Visit her online for more information, or call today at (860) 567-3022 to schedule your appointment with Litchfield's top tax consultant.