What is the official ID of this bill?
The official print number for this legislation is HR 8785.
Tax Free Tips Act: Eliminating Income and Employment Taxes on Gratuities
This bill amends the Internal Revenue Code of 1986 to provide that tips shall not be subject to income or employment taxes. Under the bill, tips are to be treated as property transferred by gift. The legislation also repeals sections regarding tip reporting by employers and employees and excludes tips from the definition of wages for Social Security, Medicare, and unemployment tax purposes.
Key points
Tips are excluded from federal income tax and will be treated as gifts.
Tips are excluded from Social Security, Medicare, and Railroad Retirement taxes.
The bill repeals Section 6053 regarding tip reporting and associated penalties for failure to report.
Tips are defined to include any gratuity provided to a salaried employee by a customer or client of the employer's business.
Status:
Expired
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