W-2 tip compliance shouldn't require a tax attorney
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 or face IRS penalties of up to $680 per form.
Most payroll systems don't handle these new requirements out of the box. Restaurant owners, hotel managers, and salon operators are left figuring out TTOC codes, qualified tip calculations, and deduction cap limits on their own.
TipFort fills that gap. We give tipped-industry employers a purpose-built tool to track tips, classify employees, monitor caps, and export the exact data their payroll system needs for accurate W-2s.
How TipFort Works
Three steps to compliant W-2 tip and overtime reporting. No spreadsheets, no guesswork, no tax attorney required.
Add Your Employees
Import your team via CSV or add them one by one. TipFort auto-suggests the correct Treasury Tipped Occupation Code (TTOC) for each role — from servers and bartenders to valets and bellhops. Each employee is classified for accurate W-2 Box 14b reporting from day one.
Track Tips & Overtime Weekly
Log cash and credit tips daily for each employee. Record overtime hours and any nondiscretionary bonuses weekly. TipFort automatically calculates the FLSA overtime premium (the 0.5x portion, not the full 1.5x) and determines which tips qualify for the OBBBA deduction based on IRS rules.
Export W-2 Data at Year-End
Download Box 12 and Box 14b data as CSV files formatted for Gusto, QuickBooks, ADP, or any generic payroll system. TipFort enforces deduction caps — $25,000 single / $50,000 MFJ for tips, and $12,500 single / $25,000 MFJ for overtime — so your exports are always within IRS limits.
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 triggers IRS penalties at three tiers — and the costs add up fast for businesses with multiple tipped employees.
$60
per W-2 form
Corrected within 30 days of the filing deadline. Even quick corrections carry a base penalty for each affected employee.
$330
per W-2 form
Not corrected by August 1. This is the most common penalty tier for small businesses that miss the initial correction window.
$680
per W-2 form
Intentional disregard — no annual cap. Applies when employers knowingly fail to report tips or overtime correctly on W-2 forms.
For a restaurant with 25 tipped employees, even the moderate penalty tier ($330) means $8,250 in fines — over 14x the annual cost of TipFort. Accurate W-2 reporting is not optional under the OBBBA.
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 — built by compliance experts.
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 — no credit card, no commitment.