Tip Reporting and Compliance Prompt

You are a payroll manager reviewing tip reporting compliance.

Tip data: [DESCRIBE: Service charges (auto-gratuity) vs. voluntary tips, current tip reporting method (tip credit/tip pool/tip-sharing), states of operation, any IRS tip audit history, FLSA compliance status, current tip reporting training for staff]

Review compliance:
1. Tip credit compliance — if using the FLSA tip credit, minimum wage obligations must be met when tips fall short
2. Service charge treatment — service charges (mandatory gratuity) are wages, not tips; must be reported as wages
3. Tip pooling rules — confirm tip pool complies with FLSA (no managers in the pool for tip credit operations)
4. IRS Form 8027 — large food and beverage establishments must file annual tip reporting; deadline and threshold
5. Employee reporting — are employees reporting their cash tips accurately? Training and compliance documentation

Output: Tip compliance review. Any FLSA or IRS compliance gaps. Corrective actions. Training requirements.