Bill > S2780

This bill clarifies how certain types of tips are treated for tax purposes under the Internal Revenue Code, specifically addressing large party or automatic gratuity situations. The bill would require that tips automatically added to a customer's bill at the time of payment and suggested tips prompted by a business be considered as voluntarily paid, even though they are not strictly voluntary in the traditional sense. This means that such tips would be eligible for the same tax treatment as other tips, potentially allowing businesses and employees to benefit from existing tax deductions related to tip income. By ensuring that these types of tips are not discriminated against in tax law, the bill aims to provide clarity and fairness in how restaurant and service industry workers' compensation is taxed, particularly in scenarios involving large group dining or events where automatic gratuities are common.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/2780/all-info