Monitor Overtime. With a tax break on the table, employees are more motivated than ever to log extra hours, including unauthorized overtime. Employers should revisit their overtime policies, retrain supervisors where necessary, and monitor hours worked to ensure compliance and control costs.

Broader Eligibility. The Treasury Department’s preliminary list of occupations eligible for tax-free tips is far broader than the Department of Labor’s categories of workers “customarily tipped” under Federal wage and hour law. Employers should not mistake tax eligibility for tip credit and tip-pool eligibility and should obtain legal guidance to avoid any misinterpretation of these laws

Reporting. Employers are required to report to the IRS certain cash tips received, the occupation of the tip recipient, and the total amount of qualified overtime compensation paid during the year. New regulations on yearly reporting may be forthcoming, so employers should be prepared to properly report employee earnings for the upcoming tax season and stay alert for IRS guidance on this matter, which may require implementing new internal payroll and reporting controls.

Employer Advantage. The Act also broadens the industries eligible to receive tip credit, which was previously available primarily to employers in the food and beverage industry. Now however, employers in the beauty and personal care industry (i.e., hair and nail care, spas, barbers, etc.) may also be eligible for tip credits if tipping is customary for those services. Employers in those industries should consult legal counsel to determine their eligibility and how to take advantage of the tip credit available to them.

Monitor Overtime. With a tax break on the table, employees are more motivated than ever to log extra hours, including unauthorized overtime. Employers should revisit their overtime policies, retrain supervisors where necessary, and monitor hours worked to ensure compliance and control costs.

Broader Eligibility. The Treasury Department’s preliminary list of occupations eligible for tax-free tips is far broader than the Department of Labor’s categories of workers “customarily tipped” under Federal wage and hour law. Employers should not mistake tax eligibility for tip credit and tip-pool eligibility and should obtain legal guidance to avoid any misinterpretation of these laws

Reporting. Employers are required to report to the IRS certain cash tips received, the occupation of the tip recipient, and the total amount of qualified overtime compensation paid during the year. New regulations on yearly reporting may be forthcoming, so employers should be prepared to properly report employee earnings for the upcoming tax season and stay alert for IRS guidance on this matter, which may require implementing new internal payroll and reporting controls.

Employer Advantage. The Act also broadens the industries eligible to receive tip credit, which was previously available primarily to employers in the food and beverage industry. Now however, employers in the beauty and personal care industry (i.e., hair and nail care, spas, barbers, etc.) may also be eligible for tip credits if tipping is customary for those services. Employers in those industries should consult legal counsel to determine their eligibility and how to take advantage of the tip credit available to them.

Monitor Overtime. With a tax break on the table, employees are more motivated than ever to log extra hours, including unauthorized overtime. Employers should revisit their overtime policies, retrain supervisors where necessary, and monitor hours worked to ensure compliance and control costs.

Broader Eligibility. The Treasury Department’s preliminary list of occupations eligible for tax-free tips is far broader than the Department of Labor’s categories of workers “customarily tipped” under Federal wage and hour law. Employers should not mistake tax eligibility for tip credit and tip-pool eligibility and should obtain legal guidance to avoid any misinterpretation of these laws

Reporting. Employers are required to report to the IRS certain cash tips received, the occupation of the tip recipient, and the total amount of qualified overtime compensation paid during the year. New regulations on yearly reporting may be forthcoming, so employers should be prepared to properly report employee earnings for the upcoming tax season and stay alert for IRS guidance on this matter, which may require implementing new internal payroll and reporting controls.

Employer Advantage. The Act also broadens the industries eligible to receive tip credit, which was previously available primarily to employers in the food and beverage industry. Now however, employers in the beauty and personal care industry (i.e., hair and nail care, spas, barbers, etc.) may also be eligible for tip credits if tipping is customary for those services. Employers in those industries should consult legal counsel to determine their eligibility and how to take advantage of the tip credit available to them.

Monitor Overtime. With a tax break on the table, employees are more motivated than ever to log extra hours, including unauthorized overtime. Employers should revisit their overtime policies, retrain supervisors where necessary, and monitor hours worked to ensure compliance and control costs.

Broader Eligibility. The Treasury Department’s preliminary list of occupations eligible for tax-free tips is far broader than the Department of Labor’s categories of workers “customarily tipped” under Federal wage and hour law. Employers should not mistake tax eligibility for tip credit and tip-pool eligibility and should obtain legal guidance to avoid any misinterpretation of these laws

Reporting. Employers are required to report to the IRS certain cash tips received, the occupation of the tip recipient, and the total amount of qualified overtime compensation paid during the year. New regulations on yearly reporting may be forthcoming, so employers should be prepared to properly report employee earnings for the upcoming tax season and stay alert for IRS guidance on this matter, which may require implementing new internal payroll and reporting controls.

Employer Advantage. The Act also broadens the industries eligible to receive tip credit, which was previously available primarily to employers in the food and beverage industry. Now however, employers in the beauty and personal care industry (i.e., hair and nail care, spas, barbers, etc.) may also be eligible for tip credits if tipping is customary for those services. Employers in those industries should consult legal counsel to determine their eligibility and how to take advantage of the tip credit available to them.

Monitor Overtime. With a tax break on the table, employees are more motivated than ever to log extra hours, including unauthorized overtime. Employers should revisit their overtime policies, retrain supervisors where necessary, and monitor hours worked to ensure compliance and control costs.

Broader Eligibility. The Treasury Department’s preliminary list of occupations eligible for tax-free tips is far broader than the Department of Labor’s categories of workers “customarily tipped” under Federal wage and hour law. Employers should not mistake tax eligibility for tip credit and tip-pool eligibility and should obtain legal guidance to avoid any misinterpretation of these laws

Reporting. Employers are required to report to the IRS certain cash tips received, the occupation of the tip recipient, and the total amount of qualified overtime compensation paid during the year. New regulations on yearly reporting may be forthcoming, so employers should be prepared to properly report employee earnings for the upcoming tax season and stay alert for IRS guidance on this matter, which may require implementing new internal payroll and reporting controls.

Employer Advantage. The Act also broadens the industries eligible to receive tip credit, which was previously available primarily to employers in the food and beverage industry. Now however, employers in the beauty and personal care industry (i.e., hair and nail care, spas, barbers, etc.) may also be eligible for tip credits if tipping is customary for those services. Employers in those industries should consult legal counsel to determine their eligibility and how to take advantage of the tip credit available to them.