Employers must now report tipped wages using the new Treasury Tipped Occupation Code (TTOC) on Form W‑2 or an equivalent year end report for 2025. This requires identifying employees in occupations that customarily receive tips, entering the correct occupation code in Box 14b or equivalent reporting, and ensuring tips are properly classified as “qualified tips” under Treasury/IRS guidance.
Once FrankCrum has identified you as a tipped employer, we will update our system with this information. If you have tipped employees and do not see the fields, please contact your payroll coordinator so FrankCrum can update your details in our system. This will then add a TTOC field to the Job and Pay tab of your employees in Workforce> Employees and in New Hire/ Re-Hire.
The IRS has published guidelines that the TTOC chosen, should match the employees SOC selection. Please enter the appropriate code.
FrankCrum has included in the field a value for FC998 - 'Pending' which can be used if you have not yet determined which category will apply to this employee.
Also included, is FC999 - 'Not Applicable' which can be used for previously tipped employees who are no longer in a tipped profession.