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Is compulsory charge for service a tip?

charge compulsory service tip
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Is compulsory charge for service a tip?

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Only if it is actually distributed by the employer to the employee in the pay period in which the charge is earned. A compulsory charge for service imposed on a customer by an employer is not a tip if it is considered part of the employer’s gross receipts and is not distributed to the employee in the pay period in which the charge is earned.

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