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Wages and Salaries
Wages, salaries, bonuses, and commissions are compensation received by employees for services performed.
Tips are received as gratuities by food servers, baggage handlers, hairdressers, and others for services performed. Tips go beyond the stated amount of the bill and are given voluntarily.
Employee compensation and tips may be in the form of cash, goods and services, awards, and taxable benefits.
Self-employed individuals are not employees. Self-employment income is taxable, but it is not included with wage and tip income on the tax return.