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Understanding TTOC Codes for Salon and Spa Workers: A Guide to Proper Classification

Senior Finance Writer · 6/18/2026

Frequently Asked Questions (FAQs)

What is the difference between a TTOC code and an IRS Form W-2?

A TTOC code is used to classify a worker's occupation, while Form W-2 is used to report their income.

How do I determine the correct TTOC code for my salon or spa worker?

Consult the IRS website or contact a tax professional for guidance on TTOC code classification.

What happens if I fail to use the correct TTOC code on Form W-2?

Failing to use the correct TTOC code can result in penalties and fines.

TTOC codes are used to classify workers in the tipped industry.
Employers must use the correct TTOC code on Form W-2 to report tipped income accurately.
Failing to use the correct TTOC code can result in penalties and fines.

Informational only — not tax advice. Verify with a qualified professional or the IRS before acting on it.