Social Security Tips (W-2)

Social Security Tips (W-2) are the total tips reported by employees, such as servers, included in Box 7 of the W-2 form, subject to Social Security and Medicare taxes.

1. What are Social Security tips (W-2)?
   Answer: They are reported tips included in Box 7 of the W-2.
   
2. Who reports them?
   Answer: Employees in tipped occupations report them.
   
3. What is the tax implication?
   Answer: They are subject to 6.2% Social Security tax up to the cap.
   
4. What is the reporting threshold?
   Answer: Employees report $20 or more per month.
   
5. What role does HR play?
   Answer: HR ensures accurate tip reporting.