It's structured as a federal income tax deduction, capped at $25k, and does not reduce reportable payroll or gross income. https://www.congress.gov/bill/119th-

It's structured as a federal income tax deduction, capped at $25k, and does not reduce reportable payroll or gross income. https://www.congress.gov/bill/119th-congress/house-bill/1/text#:~:text=SEC.%2070201.%20NO%20TAX%20ON%20TIPS.,-(a)%20Deduction%20Allowed https://www.congress.gov/bill/119th-congress/house-bill/1/te...