Food servers, valets and others performing services often receive tips or gratuities. Tips and gratuities are subject to income tax. Tips and gratuities are the sole property of the employee to whom they were given. You cannot collect or receive any gratuity left for the employee. You cannot deduct from the employee’s wages any fees and/or costs to the employer associated with the use of a credit card by the customer. You cannot credit the employee’s tips against his/her wages to satisfy wage requirements.1
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