4137x Guide

About Form 4137, Social Security and Medicare Tax On ... - IRS

: Failure to report required tips to your employer can lead to a penalty equal to 50% of the Social Security and Medicare taxes due on those tips .

: You must maintain a daily tip log or other adequate records to support the figures reported on the form . About Form 4137, Social Security and Medicare Tax On

: It determines the employee's share of FICA (Social Security and Medicare) taxes on tips that weren't taxed during the year .

: The form applies a 6.2% Social Security tax (up to a wage limit, such as $176,100 for 2025) and a 1.45% Medicare tax on every dollar of unreported tips . : It determines the employee's share of FICA

: If you received $20 or more in cash and charge tips in any calendar month and did not report the full amount to your employer .

: Unreported income is not credited to your Social Security history, potentially lowering your future monthly benefit payments . : Unreported income is not credited to your

: Using IRS Form 4137 fulfills your legal responsibility to report all income and helps avoid IRS audits or penalties . Who Must File