Keep tip records ready for payroll review
We built TipFort because the No Tax on Tips law created new W-2 reporting requirements and most small businesses have no idea what changed.
Why We Built This
The One Big Beautiful Bill Act (OBBBA) introduced tax deductions for tips and overtime, a win for employees. But it also created new W-2 reporting fields that employers must fill in correctly. Return penalties vary with correction timing; intentional disregard carries a minimum of $690 per form.
Restaurant owners, hotel managers, and salon operators need to reconcile daily tip records with payroll, review occupation codes, and confirm their provider's 2026 reporting process.
TipFort fills that gap. We give tipped-industry employers a purpose-built tool to track tips, classify employees, monitor personal deduction references, and prepare reporting worksheets for review with an accountant or payroll provider.
How TipFort Works
Bring employee classifications, tip records and overtime calculations into one workflow before year-end payroll review.
Add Your Employees
Import your team via CSV or add them one by one. Review suggestions from the final IRS occupation list against actual duties. Add a second occupation when needed; use 000 only for a reviewed nonqualifying occupation.
Track Tips & Overtime Weekly
Record voluntary cash and charged tips separately from service charges paid as wages. Enter reviewed FLSA overtime hours and a regular rate that includes required adjustments. Record the actual overtime payment date for year-end reporting.
Export W-2 Data at Year-End
Download a 2026 worksheet with total reportable tips under TP, full qualified FLSA overtime under TT, and reviewed Box 14b occupation codes. Employee personal deduction limits do not reduce employer reporting. Confirm the worksheet with payroll before filing.
The Cost of Getting It Wrong
The OBBBA introduced strict W-2 reporting requirements for tipped employers. Incorrect or missing data in Box 12 and Box 14b can result in penalties. The scenarios below apply to 2026 returns before annual limits, exceptions or relief.
$60
per W-2 form
Return corrected within 30 days of the filing deadline, before applicable annual limits or relief.
$130
per affected form
Return corrected after 30 days but by August 1, before applicable annual limits or relief.
$340
per W-2 form
Return corrected after August 1, not corrected, or not filed, before applicable annual limits or relief.
$690+
per affected form minimum
Intentional disregard has a minimum penalty and no maximum. Separate employee statement penalties may also apply.
If 25 returns are affected by the $340 scenario, the illustrative return penalty is $8,500 before any limits or relief. A separate failure-to-furnish penalty may apply.
Built for Tipped Industries
Any business with employees who regularly earn tips needs OBBBA-compliant W-2 reporting. TipFort covers all Treasury-recognized tipped occupations across five major industries, including servers, bartenders, baristas, valets, bellhops, hair stylists, spa therapists, and casino dealers.
Trust & Security
SSN last 4 only
We never store full Social Security numbers.
Encrypted data
256-bit encryption in transit and at rest via Supabase and Vercel.
IRS-aligned formulas
Calculations follow FLSA and OBBBA guidance and are built for tipped-industry workflows.
Accountant-friendly exports
CSV exports formatted for Gusto, QuickBooks, ADP, or your accountant's system.
Ready to simplify W-2 tip reporting?
Free during early access with no credit card and no commitment.
Want a self-serve starting point? Explore our free compliance tools and the OBBBA blog before starting a trial.