Estimate your IRS penalty exposure for incorrect W-2 tip and overtime reporting. See all three penalty tiers and compare against the cost of compliance automation.
Enter your employee count and error rate to see your penalty exposure across all three IRS tiers. Results update instantly - no signup required.
What percentage of W-2s might have OBBBA reporting errors?
10 affected employees · Not corrected by August 1
$3,300
Estimated penalty exposure
Minimum
$600
$60/emp
Corrected <30 days
Moderate
$3,300
$330/emp
Not fixed by Aug 1
Maximum
$6,800
$680/emp
Intentional disregard
TipFort vs. Penalties
TipFort annual cost
$588
$49/mo
Your penalty risk
$3,300
Moderate tier (most common)
TipFort costs 6x less than your potential penalty.
Or create a free account — takes 3 minutes
Automate OBBBA compliance to eliminate W-2 reporting errors and avoid IRS penalties entirely.
Free during early access. See pricing tiers, feature limits, and export coverage before you sign up.
W-2 Tip Reporting Penalties: $60 to $680 Per Employee Explained
W-2 tip reporting penalties range from $60 to $680 per form in 2026. Learn penalty tiers, correction deadlines, and how to avoid fines.
No Tax on Tips: What Restaurant Owners Actually Need to Do in 2026
No tax on tips creates new W-2 reporting for employers in 2026. Get the step-by-step compliance checklist before penalties hit.