Rev. Rul. 57-71

Tips are received by a waiter directly from customers of his employer for services performed as an employee. These tips are in no way accounted for by the waiter to his employer. Held , although the tips are includible in the gross income of the waiter for Federal income tax purposes they do not constitute `wages' for Federal employment tax purposes because they are not accounted for by the waiter to his employer. Sections 31.3121(a)-1 and 31.3-306(b)-1 of the Employment Tax Regulations. Held further , since the tips are received while rendering services as an employee, they are not includible in computing net earnings from self-employment, in view of the provisions of section 1402(c)(2) of the Self-Employment Contributions Act of 1954 (chapter 2, subtitle A, Internal Revenue Code of 1954) which, with certain exceptions not material here, specifically exclude the performance of services by an individual as an employee from the term `trade or business' as used in the Act.