- 1). Using the pen and ruler, draw a ledger table in the tip journal with the following column headings: “Date of Tips Recorded, Date of Entry, Tips Received Directly From Customers and Other Staff, and Credit and Debit Tips Received,” according to the IRS' 4070A form.
- 2). Draw two additional ledger table columns in the tip journal with a pen and ruler, entitled: “Tips, Payout to Other Employees, and Names of Employees to Whom I Paid Tips.”
- 3). Ask the employer how often they want income reported to them. Monthly is a common reporting interval. Make note of the reporting interval and whether the employer requests that it be changed in the journal.
- 4). Calculate the sub-total of each column in the reporting interval by adding each entry to the following entry using a calculator. Write the sum at the bottom of each column.
- 5). Draft an employee record of tips to the employer with the following fields: “Employee's Name and Address, Employer's Name and Address (including establishment name), and Tip Reporting Period (including month, numeric date and year, and the reporting employee's signature).” The report also needs to include the reporting employee's “social security number, cash tips received, credit and debit card tips received, tips paid out, net tips, and the date,” according to the IRS.
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