TaxBandits Knowledge Base

Have questions? We've got you covered!
What is a tipped employee?

A tipped employee is an individual who earns $30 or more as a tip for a month. However, the threshold for the tipped employees may differ for each state. The employees' tipped minimum wage is lower than their basic pay because they earn tip credit.

Example: Employees who work in restaurants, hospitals, hotels, etc., are considered tipped employees.
 

Was this helpful? Yes No

Need more help?

Get in touch with our dedicated support team Contact Us

Need More Help