Tax Rules with code TP are for companies who are eligible for no tax on tips and tax rules with code TS are for companies whose employees receive tips, but the company is not on the list of company types eligible for no tax on tips.
Tax rule descriptions updated for existing tips tax rules where the company industry tips are
eligible for no tax and will be reported on the 2026 – 2028 W-2 Box 12 using Code TP:
• 800041, Reported Tip Wages Code TP
• 800133, Reported Credit Card Tips Wages Code TP
Eligible occupations in companies for no tax on tips for their employees: https://home.treasury.gov/system/files/136/Tipped-Occupations-Detailed-8-27-2025.pdf
Tax rules added for company industries where tips are not eligible for no tax and will be
reported on the 2026 – 2028 W-2 Box 12 using Code TS:
• 800145, Reported Tip Wages Not Code TP
• 800147, Reported Credit Card Tip Wages Not Code TP
Tax rule added for Mandatory Service Charge which is not eligible for no tax regardless of
the company industry and will be reported on the 2026 – 2028 W-2 Box 12 using Code TS:
• 800149, Mandatory Service Charge
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Shari Eckersley
Sage 100 Managing Consultant
DSD Business Systems
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