U.S Code last checked for updates: May 24, 2024
§ 6053.
Reporting of tips
(a)
Reports by employees
(b)
Statements furnished by employers
(c)
Reporting requirements relating to certain large food or beverage establishments
(1)
Report to Secretary
In the case of a large food or beverage establishment, each employer shall report to the Secretary, at such time and manner as the Secretary may prescribe by regulation, the following information with respect to each calendar year:
(A)
The gross receipts of such establishment from the provision of food and beverages (other than nonallocable receipts).
(B)
The aggregate amount of charge receipts (other than nonallocable receipts).
(C)
The aggregate amount of charged tips shown on such charge receipts.
(D)
The sum of—
(i)
the aggregate amount reported by employees to the employer under subsection (a), plus
(ii)
the amount the employer is required to report under section 6051 with respect to service charges of less than 10 percent.
(E)
With respect to each employee, the amount allocated to such employee under paragraph (3).
(2)
Furnishing of statement to employees
Each employer described in paragraph (1) shall furnish, in such manner as the Secretary may prescribe by regulations, to each employee of the large food or beverage establishment a written statement for each calendar year showing the following information:
(A)
The name and address of such employer.
(B)
The name of the employee.
(C)
The amount allocated to the employee under paragraph (3) for all payroll periods ending within the calendar year.
Any statement under this paragraph shall be furnished to the employee during January of the calendar year following the calendar year for which such statement is made.
(3)
Employee allocation of 8 percent of gross receipts
(A)
In general
For purposes of paragraphs (1)(E) and (2)(C), the employer of a large food or beverage establishment shall allocate (as tips for purposes of the requirements of this subsection) among employees performing services during any payroll period who customarily receive tip income an amount equal to the excess of—
(i)
8 percent of the gross receipts (other than nonallocable receipts) of such establishment for the payroll period, over
(ii)
the aggregate amount reported by such employees to the employer under subsection (a) for such period.
(B)
Method of allocation
The employer shall allocate the amount under subparagraph (A)—
(i)
on the basis of a good faith agreement by the employer and the employees, or
(ii)
in the absence of an agreement under clause (i), in the manner determined under regulations prescribed by the Secretary.
(C)
The Secretary may lower the percentage required to be allocated
(4)
Large food or beverage establishment
For purposes of this subsection, the term “large food or beverage establishment” means any trade or business (or portion thereof)—
(A)
which provides food or beverages,
(B)
with respect to which the tipping of employees serving food or beverages by customers is customary, and
(C)
which normally employed more than 10 employees on a typical business day during the preceding calendar year.
For purposes of subparagraph (C), rules similar to the rules of subsections (a) and (b) of section 52 shall apply under regulations prescribed by the Secretary, and an individual who owns 50 percent or more in value of the stock of the corporation operating the establishment shall not be treated as an employee.
(5)
Employer not to be liable for wrong allocations
(6)
Nonallocable receipts defined
For purposes of this subsection, the term “nonallocable receipts” means receipts which are allocable to—
(A)
carryout sales, or
(B)
services with respect to which a service charge of 10 percent or more is added.
(7)
Application to new businesses
(8)
Certified professional employer organizations
(Added Pub. L. 89–97, title III, § 313(e)(2)(A), July 30, 1965, 79 Stat. 384; amended Pub. L. 89–212, § 2(d), Sept. 29, 1965, 79 Stat. 859; Pub. L. 94–455, title XIX, § 1906(b)(13)(A), Oct. 4, 1976, 90 Stat. 1834; Pub. L. 97–248, title III, § 314(a), Sept. 3, 1982, 96 Stat. 603; Pub. L. 98–369, div. A, title X, § 1072(a), (c)(1), July 18, 1984, 98 Stat. 1052; Pub. L. 113–295, div. B, title II, § 206(c)(3), Dec. 19, 2014, 128 Stat. 4071.)
cite as: 26 USC 6053