Understanding TTOC Codes
A complete guide to Treasury Tipped Occupation Codes and W-2 compliance.
What are TTOC Codes?
Treasury Tipped Occupation Codes (TTOCs) are a new classification system introduced by the U.S. Treasury Department in 2025 as part of the "One, Big, Beautiful Bill Act" (OBBBA).
These codes identify occupations where workers customarily receive tips as part of their compensation. The Treasury compiled an initial list of 68 occupations across 8 categories, based on occupations that received tips prior to December 31, 2024.
Starting with the 2026 tax year, employers must include the appropriate TTOC code on employee W-2 forms (Box 14b) to qualify for the "no tax on tips" benefit.
TTOC vs SOC Codes: What's the Difference?
Purpose: Tax compliance for tipped workers
Issued by: U.S. Treasury Department
Format: 3-digit code (e.g., 101, 602)
Scope: 68 tipped occupations only
Used on: Form W-2 (Box 14b)
Effective: 2026 tax year onwards
Purpose: Federal statistics and research
Issued by: Bureau of Labor Statistics (BLS)
Format: 6-digit code (e.g., 35-3011, 31-9011)
Scope: All 800+ U.S. occupations
Used on: Government surveys, labor data
Effective: Updated periodically (current: 2018)
Key takeaway: TTOCs are derived from SOC codes but narrowed to tipped positions. Each TTOC maps to one or more SOC codes, but not all SOC codes have a corresponding TTOC.
How to Use TTOC Codes on W-2 Forms
- 1
Identify the employee's occupation
Match their job duties to one of the 68 TTOC categories.
- 2
Find the correct code
Use this tool to search by job title or browse by industry.
- 3
Enter code in Box 14b
Your payroll system should have a TTOC field. Enter the 3-digit code.
- 4
Report tips in Box 12 with Code TP
Qualified tips are reported separately using the existing TP code.
Common TTOC Mistakes to Avoid
Using SOC codes instead of TTOC codes
TTOCs are 3-digit codes (e.g., 602), not the 6-digit SOC format (e.g., 31-9011).
Assigning codes based on job title alone
Verify that the employee's actual duties match the TTOC description.
Ignoring carve-out industries
Healthcare, performance arts, and athletics may be excluded from the "no tax on tips" benefit.
Missing the filing deadline
Corrections after August 1 result in $280/form penalties.
First-Time Filer Checklist
Related Resources
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