Not affiliated with the government
1329.1 Do cash tips count as wages?
Cash tips you receive in the course of employment by any one employer are wages if the tips total $20 or more in a calendar month. This includes tips you receive:
Directly from customers;
From charge customers that are paid by your employer to you; and
Under a tip-splitting arrangement.
1329.2 Do non-cash tips count as wages?
Non-cash tips, such as passes, tickets, or services, do not count as wages.
Note: A club, hotel, or restaurant may require customers who use its dining or banquet rooms to pay a service charge, that is given to the employees. The employee's share of this service charge is not a tip. It is part of wages paid to the employee by the employer.
(For special rules concerning employee tip reporting to employers and payment of FICA tax on tips, see §1408.)
Last Revised: March, 2001
- Special Rules for Cash Tips After 1965
- Employee Tax Deducted from Pay
- Cash-Pay Tests
- What types of income count under the earnings test?
- Statements of Earnings for Employees
- Social Security and Medicare Tax Rates
- Records Employers Must Keep
- Wages for Social Security Purposes
- Actual or Constructive Payment of Wages
- What types of income do NOT count under the earnings test?
- Do fringe benefits count as wages?
- Do payments to a profit-sharing or stock bonus plan count as wages?
Ads - Also Recommended