The IRS has released
guidance on a new tip reporting procedure, the Attributed Tip Income Program
(ATIP), for employers in the food and beverage industry. The program is
designed to reduce industry recordkeeping burdens, offer simple enrollment
requirements, and promote tip reporting on federal income tax returns.
As with the IRS’s other
tip reporting programs, employer and employee participation in ATIP will be voluntary.
Under ATIP, however, employers won’t be required to meet with the IRS to
determine tip rates or eligibility, and employers won’t have to sign an
agreement with the IRS to participate. As an added plus, participating
employees won’t have to maintain a daily tip log or other tip records. For more
on ATIP, which begins Jan. 1, 2007, go to www.irs.gov/newsroom/article/0,,id=160536,00.html.
Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.