IRSProposed Rule
Occupations that Customarily and Regularly Received Tips; Definition of Qualified Tips
Labor & WorkplaceFinance & Banking
Ad Space (leaderboard)
Summary
The IRS is proposing new rules to clarify which jobs are considered 'tipped occupations' and how tips should be counted for tax purposes. This matters because it affects how much income workers report, what benefits they qualify for, and how employers handle payroll taxes for servers, bartenders, and similar workers.
Key Points
- 1The IRS is updating its definition of which jobs customarily receive tips, which could change which workers are classified as tipped employees
- 2The rule affects how tips are reported for income taxes, Social Security, Medicare, and unemployment benefits
- 3Workers in tipped jobs may see changes in how much they owe in taxes or what benefits they're eligible for based on their tip income
- 4Employers will need to follow new guidelines for how they record and report employee tips on payroll
- 5This is still a proposed rule, meaning the IRS is seeking public feedback before making it final
Key Dates
Published
October 23, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
The Digest Network
Ad Space (rectangle)