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ITG FAQ #2 Answer-Can an employee's credit card tips be held by the employer and then paid to the employee through regular payroll?

The method for paying out charge tips is determined by the employer. Charge tips can be distributed daily in cash or accumulated and paid through regular payroll. Regardless of how charged tips are distributed, all tip income is taxable to the employee regardless of how the tip income was received.

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Page Last Reviewed or Updated: 20-Nov-2014