Question

If an ER is unable to collect SS/MED due on an EE's reported Tip Income, the ER must:

A. Pay the EE's share of SS/Medi
B. Report the uncollected amount on the EE's W-2 in Box 12, coded "A" for SS, "B" for Medi
C. Report the uncollected amount in Boxes 4 and 6 on the EE's W-2
D. Not report the uncollected amount until it is collected from the EE

Answer 1

If an ER is unable to collect SS/MED due on an EE's reported Tip Income, the ER must pay the EE's share of SS/Medi.

Step-by-step explanation:

If an ER is unable to collect SS/MED due on an EE's reported Tip Income, the ER must:

1. Pay the EE's share of SS/Medi
2. Report the uncollected amount on the EE's W-2 in Box 12, coded "A" for SS, "B" for Medi
3. Report the uncollected amount in Boxes 4 and 6 on the EE's W-2
4. Not report the uncollected amount until it is collected from the EE

The correct answer is option A: Pay the EE's share of SS/Medi. If the employer is unable to collect the Social Security and Medicare taxes from the employee, they are still responsible for paying the employee's share of the taxes.