Tip compliance rates

A Gaming Industry Tip Compliance Agreement (GITCA) is a voluntary agreement for employee tip reporting that is entered into by an employer, its employees, and the IRS. The agreement defines rates for all gaming employees receiving tips and gratuities on a site by site basis. General steps in the tip compliance process include:

  • The IRS and an employee enter into a Gaming Industry Tip Compliance Agreement (GITCA). The agreement provides designated tip rates for the employer's operation and defines how the employees must participate in the compliance process.
  • Participating employees are required to report tip income to their employer according to rates defined in the agreement. In order to report income below the established rate, the employee must be able to verify the lower tip income amounts.
  • The employee's withholding tax and income reported on the employee's W-2 is then based on the defined rates or, in some cases, the verified lower amount.

With tip compliance, the employee does not need to declare tips and they do not belong to a toke pool; the totalizer adds tips based on the rates. You can configure tip compliance rates for various business structure and shift combinations.

For information on calculating tip compliance, see Calculate tip compliance.

Configure tip compliance rates

  1. Within the Gaming application, go to Administration > Tip Compliance Rates.
  2. If you need to create a sequence:
    1. Click New .
    2. Select the business structure types for the sequence.
    3. Select Shift if different shifts for jobs have different rates. If you select Shift, you must have Shift Time Settings configured. See Shift Time Settings.
    4. Click Save.
  3. Select a sequence from the table, and click Edit Tip Compliance.
  4. Click New to create a new setting, or select a setting from the table and click Edit .
  5. For each item in the sequence, select the appropriate option.
  6. Specify the following:
    • Rate
    • Pay Code
    • Effective Date
    Note:
    • You can select an effective date in the past (up to 30 days). The number of days may be different if the value has been changed in Gaming Properties.
    • You can enter 0.00 for Rate and leave the Pay Code field empty. This effectively disables tip compliance for the period of time between the effective date and the expiration date.
  7. Click Save.

Export tip compliance rates

You can export tip compliance rates to csv files, which can then be opened in Excel.

Administration > Tip Compliance Rates

  1. On the Tip Compliance Rates page, select a sequence from the table and click Edit Tip Compliance.
  2. If needed, select a timeframe. You can select All Time, Today, or a range of dates.
  3. Click Export.

The file is downloaded with the same name as the tip compliance rate sequence. The name also includes the selected timeframe.