Tipped Employees: Tax, Wage and Hour Issues

Tipped Employees: Tax, Wage and Hour Issues helps guide payroll professionals through the complications of state and federal laws that govern tipped employees  ̶  keeping employers in compliance and avoiding wage and tax penalties.

Price: $50 PDF only


If you’re a payroll professional working with tipped employees, you know how many more requirements and challenges you face compared to most payroll departments. You face major differences in the key compliance areas of administering employment taxes and applying wage and hour rules.

Employers must deal not only with specific federal laws, but also various state wage and hour laws and tax requirements. It is a constant test for payroll managers to navigate the differences between the laws to stay in compliance, avoiding exposure to wage and hour and tax penalties as well as lawsuits. In addition, efforts are underway to better capture tip income information for tax purposes, and this is adding to employer compliance requirements.

This report outlines what is necessary to:

  • •Comply with federal FLSA requirements;
  • •Comply with state wage and hour requirements;
  • •Comply with federal taxation, withholding, and reporting requirements; and
  • •Qualify for the employer FICA credit on tip amounts in excess of the minimum wage.

Also included are new developments concerning federal tax audits and educational programs available to employers in order to help them comply. Proper treatment and handling of tips is becoming more and more complex. Ensure that your organization is in compliance. 

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