With regard to employee’s reported tips, the employer must:

With regard to employee’s reported tips, the employer must:
A . report tips as wages on Form W-2 and pay the employer portions of social security and Medicare taxes
B. report taxes on tips separately when making an employment tax deposit
C. report and pay the employer portion of social security and Medicare taxes on the portion of cash tips above the federal minimum wage
D. withholds and pays only the employees’ portion of social security and Medicare taxes on tips

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Answer: A