Tip Affidavits

Written by Lois Churchill, Spectrum Enterprises

When a job pays tips, or can be reasonably expected to pay tips, the use of a Tip Affidavit is highly recommended.

Servers in restaurants have to report credit card tips but not cash tips, the same with taxi drivers.  Valet attendants don’t necessarily have to report any tip income but don’t be fooled into believing they don’t earn any. At the typical $1 per time I typically pay times the overall number of cars parked/retrieved in a shift, this can add up to some serious income!

Regardless of whether some tip income is reported on pay stubs, if the job is one in which tips are or could be earned obtain an affidavit to determine if there’s additional countable income.


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