February 3, 2026
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“No Tax on Tips”: What Employers Should Know (and What Employees Should Expect)
The phrase “No Tax on Tips” is getting a lot of attention, but it doesn’t necessarily mean payroll withholding stops overnight. In many cases, any federal income tax benefit tied to tips would be claimed on an employee’s tax return (as a deduction or credit), while tip reporting and FICA treatment typically remain the same. Here’s what employers should know about current payroll handling, how to set employee expectations, and the practical steps to take now.
Click here to read more: Employer Guidance: No Tax on tips

Categories: Blog