Are tips taxable? And are delivery drivers considered to be tipped employees? US Paywizard.org answers.
Question: January 2011
How much of a tipped employees tips are required to be reported to the IRS for taxation? Are delivery drivers considered the same as "tipped employees"?
Answer US Paywizard.org
The IRS is very specific about income from tips: all tips are taxable income. Please find in the previous link the tipped workers guide lines from the IRS.
Concerning your 2nd question:
You are a tipped employee - that's for example a waitress or bellboy or pizza deliverer - if you receive regularly and customarily more than $30 a month in tip. If so, your employer is only required to pay $2.13 an hour in direct wages if that amount plus the tips received equals at least the federal minimum wage of $7,25 per hour. Your employer can only do that if you are informed about the tip credit allowance, if your employer is able to show that you earn at least the minimum wage when direct wage and tip are combined and allows you to retain all tips.
Some states set sub minimum rates for minors and/or students or exempt them from coverage, or have a training wage for new hires. Such differential provisions are not displayed below.