What is always true about a food service employee's tips?
A) They are taxable income.
B) They are nontaxable income.
C) They are controlled by managers.
D) They cannot include any mandatory tip pooling arrangements.

Question

Quizplus · Accepted Answer

Tips received by a food service employee are considered taxable income by the IRS, and therefore must be reported on the employee's tax return.

What Is Always True About a Food Service Employee's Tips