TREATMENT OF EMPLOYEE TIPS.

SEC. 1112. TREATMENT OF EMPLOYEE TIPS. (a) Employee Cash Tips.— (1) Reporting requirement not considered.— Subparagraph (A) of section 45B(b)(1) (relating to excess employer social security tax) is amended by inserting “(without regard to whether such tips are reported under section 6053)” after “section 3121(q)”. (2) Taxes paid.— Subsection (d) of section 13443 of the Revenue Reconciliation Act of 1993 is amended by inserting “, with respect to services performed before, on, or after such date” after “1993”. (3) Effective date.— The amendments made by this subsection shall take effect as if included in the amendments made by, and the provisions of, section 13443 of the Revenue Reconciliation Act of 1993. (b) Tips for Employees Delivering Food or Beverages.— (1) In general.— Paragraph (2) of section 45B(b) is amended to read as follows: “(2) Only tips received for food or beverages taken into account.— In applying paragraph (1), there shall be taken into account only tips received from customers in connection with the providing, delivering, or serving of food or beverages for consumption if the tipping of employees delivering or serving food or beverages by customers is customary.”. (2) Effective date.— The amendment made by paragraph (1) shall apply to tips received for services performed after December 31, 1996.