Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

Forms and Documents

Document Name	Status
Form 8846 Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips Form and Instruction	Modified
ombat2.doc Supplementary Document	2008-10-16
8846.SUP.doc Supporting Statement A	2011-10-12

IC Document Collections

IC ID	Document Title	Status
40359	Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips Form and Instruction	Modified

ICR Details

OMB Control No: 1545-1414	ICR Reference No: 201110-1545-036
Status: Historical Active	Previous ICR Reference No: 200810-1545-020
Agency/Subagency: TREAS/IRS	Agency Tracking No:
Title: Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips
Type of Information Collection: Revision of a currently approved collection	Common Form ICR:  No
Type of Review Request: Regular
OIRA Conclusion Action: Approved without change	Conclusion Date: 04/25/2012
	Date Received in OIRA: 01/19/2012
Terms of Clearance:

	Inventory as of this Action	Requested	Previously Approved
Expiration Date	04/30/2015	36 Months From Approved	04/30/2012
Responses	37,200	0	37,200
Time Burden (Hours)	161,448	0	143,220
Cost Burden (Dollars)	0	0	0

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Abstract: Employers in food or beverage establishments where tipping is customary can claim an income tax credit for the amount of social security and Medicare taxes paid (employer's share) on tips, other than tips used to meet the minimum wage requirement.

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Authorizing Statute(s): US Code: 26 USC 45B Name of Law: Credit for portion of employer social security taxes paid with respect to employee cash tips
   US Code: 26 USC 38 Name of Law: General business credit
  

Citations for New Statutory Requirements: PL: Pub.L. 111 - 240 2012, 2013 Name of Law: SBJA

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Associated Rulemaking Information
RIN:	Stage of Rulemaking:	Federal Register Citation:	Date:
	Not associated with rulemaking

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Federal Register Notices & Comments
60-day Notice:	Federal Register Citation:	Citation Date:
	76 FR 49836	08/11/2011
30-day Notice:	Federal Register Citation:	Citation Date:
	77 FR 2131	01/13/2012
Did the Agency receive public comments on this ICR? No

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Number of Information Collection (IC) in this ICR: 1

IC Title	Form No.	Form Name
Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips	8846	Credit for Employer Social Security and Medicare Taxes Paid on Certain Employee Tips

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ICR Summary of Burden

	Total Approved	Previously Approved	Change Due to New Statute	Change Due to Agency Discretion	Change Due to Adjustment in Estimate	Change Due to Potential Violation of the PRA
Annual Number of Responses	37,200	37,200	0	0	0	0
Annual Time Burden (Hours)	161,448	143,220	18,228	0	0	0
Annual Cost Burden (Dollars)	0	0	0	0	0	0

Burden increases because of Program Change due to Agency Discretion: No

Burden Increase Due to:

Burden decreases because of Program Change due to Agency Discretion: No

Burden Reduction Due to:

Short Statement: Certain food and beverage establishments use Form 8846 to claim a credit for social security and Medicare taxes paid or incurred by the employer on certain employees' tips. The Form 3800 has been redesigned to figure the passive activity limit and carryovers related to specified credits (IRC section 38(c)(4)). Lines 7 through 11 were removed, since the passive activity limit and the carryover amounts are calculated on Form 3800. If any tipped employee's wages and tips exceeded the 2010 social security tax wage base of $106,800 subject to the 6.2% rate or were exempt from social security taxes because the taxpayer applied the Hiring Incentives to Restore Employment (HIRE) Act payroll tax exemption, taxpayers must check box on line 4 and attach a separate computation showing the amount of tips subject to only the Medicare tax rate of 1.45%. The additional burden involved in computing this amount, in conjunction with other program changes, will result in an estimated annual burden increase of 18,228 hours.

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Annual Cost to Federal Government: $650

Does this IC contain surveys, censuses, or employ statistical methods? No

Is the Supporting Statement intended to be a Privacy Impact Assessment required by the E-Government Act of 2002? No

Is this ICR related to the Affordable Care Act [Pub. L. 111-148 & 111-152]? No

Is this ICR related to the Dodd-Frank Wall Street Reform and Consumer Protection Act, [Pub. L. 111-203]? No

Is this ICR related to the American Recovery and Reinvestment Act of 2009 (ARRA)? No

Is this ICR related to the Pandemic Response? Uncollected

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Common Form ICR:  No

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On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).

The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:

(a) It is necessary for the proper performance of agency functions;

(b) It avoids unnecessary duplication;

(c) It reduces burden on small entities;

(d) It uses plain, coherent, and unambiguous language that is understandable to respondents;

(e) Its implementation will be consistent and compatible with current reporting and recordkeeping practices;

(f) It indicates the retention periods for recordkeeping requirements;

(g) It informs respondents of the information called for under 5 CFR 1320.8 (b)(3) about:

(i) Why the information is being collected;

(ii) Use of information;

(iii) Burden estimate;

(iv) Nature of response (voluntary, required for a benefit, or mandatory);

(v) Nature and extent of confidentiality; and

(vi) Need to display currently valid OMB control number;

(h) It was developed by an office that has planned and allocated resources for the efficient and effective management and use of the information to be collected.

(i) It uses effective and efficient statistical survey methodology (if applicable); and

(j) It makes appropriate use of information technology.

If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.

Certification Date: 01/19/2012

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