Indiana Administrative Code
Title 646 - DEPARTMENT OF WORKFORCE DEVELOPMENT
Article 5 - INDIANA EMPLOYMENT AND TRAINING SERVICES ACT; ADMINISTRATION
Rule 6 - Wages
Section 6-11 - Tips and gratuities
Universal Citation: 646 IN Admin Code 6-11
Current through March 20, 2024
Authority: IC 22-4-18-1; IC 22-4.1-3-3
Affected: IC 22-4-4-2; IC 22-4.1
Sec. 11.
(a) Tips and gratuities received by an employee from persons other than the employer, and not accounted for to the employer, are not wages. However, the amount of tips or gratuities accounted for by the employee to the employer by written statement, as required by Section 6053 of the Internal Revenue Code when the tips are in excess of twenty dollars ($20) per month, are wages within the meaning of IC 22-4-4-2.
(b) Where an employer does not permit tipping of employees, but rather:
(1) adds a certain
percent to the charges made to patrons; and
(2) disburses the added amounts to employees;
the sums disbursed are wages and not tips.
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