Legal Question in Tax Law in Nevada

Can an employer report your earned tips without your consent? As example: there is an all employee tip pool which gets distributed evenly, the tip pool in mandatory even if not agreed to (nothing signed and nothing verbally agreed to, it's just done) the employer then is automatically reporting those earned tips which is recorded from the tip pool for each employee. Can they do any of this without employee consent? As far as I know employees are entirely responsible for reporting earned tips.


Asked on 2/01/24, 4:20 pm

1 Answer from Attorneys
Richard Bryan Richard Bryan Attorney PC

When tips are put into a jar like that and then divided, your employer is responsible for putting those on your W-2. Your employer is handling this correctly. See the section for "allocated tips" in IRS Publication 531: https://www.irs.gov/publications/p531#en_US_2023_publink100022548

Good luck.

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Answered on 2/01/24, 9:16 pm


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