Which form should employees use to report tips to their employers?

Employees should use Form 4070 to report tips to their employers. This form is specifically designed for employees who receive tips as part of their compensation. By using Form 4070, employees provide detailed information regarding the tips they have received during the month, allowing employers to appropriately account for these earnings and ensure proper tax withholding.

Understanding this form's role is crucial for compliance with IRS regulations, as tip income is subject to Social Security and Medicare taxes. Using the correct form helps maintain accountability and ensures that both employees and employers adhere to tax obligations related to tip income. In contrast, the other forms listed serve different purposes; for instance, Form 1040 is a personal income tax return, Form W-2 reports wages and tax withholdings for employees, and Form 1099 is typically used to report various types of income other than wages, salaries, and tips.