Compliance Resources
Everything you need for TTOC codes and W-2 tip-reporting compliance.
Jan 2027
W-2 filing deadline for 2026
Box 14b
Where the TTOC code is reported
68 codes
Tipped occupations defined
Penalties for incorrect W-2 filing
| Timing | Penalty per form |
|---|---|
| Corrected within 30 days | $60 |
| Corrected by August 1 | $130 |
| Corrected after August 1 | $340 |
| Intentional disregard (no cap) | $680+ |
Amounts are indicative IRS information-return penalties and adjust annually. Small businesses may qualify for lower caps.
Official sources
IRS Form 8027 ↗
Employer's Annual Information Return of Tip Income and Allocated Tips.
IRS Form W-2 ↗
Wage and Tax Statement — Box 14b carries the TTOC code.
IRS Form 4137 ↗
Social Security and Medicare Tax on Unreported Tip Income.
IRS Publication 15-B ↗
Employer's Tax Guide to Fringe Benefits, including tip reporting.
U.S. Department of the Treasury ↗
Source of the official Tipped Occupation Code list.
BLS SOC System ↗
Standard Occupational Classification that TTOC codes derive from.
Frequently asked questions
When do TTOC codes need to be on W-2s? +
TTOC codes must be reported on W-2 forms for the 2026 tax year — that is, on W-2s issued in January 2027 for the 2026 calendar year.
Where does the TTOC code go on the W-2? +
Enter it in Box 14b. Qualified tips themselves are still reported in Box 12 using Code TP.
What is the difference between TTOC and SOC codes? +
TTOC (Treasury Tipped Occupation Code) is specific to tipped workers for tax purposes. SOC (Standard Occupational Classification) is the broader federal system used by the BLS. TTOC codes are derived from SOC codes but narrowed to tipped positions.
Which occupations are excluded from 'no tax on tips'? +
Tips earned in certain fields are excluded, including specified service trades such as health, performing arts compensated for the performance itself, and athletics. Check current Treasury guidance for the exact carve-outs.