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How to Add Tipped Occupation Codes to Employees

Learn how to add a Treasury Tipped Occupation Code (TTOC) to employees in Patriot so tip information reports correctly on their W-2s. Video walkthrough is included.

This article explains how to add a Treasury Tipped Occupation Code (TTOC) to employees in Patriot. A TTOC is a code that identifies a job that normally receives tips. Adding the right code makes sure each employee's reported tips show up correctly on their Form W-2.

The video shows a walkthrough on how to add TTOC codes to employee roles.


What is a Treasury Tipped Occupation Code (TTOC)?

A Treasury Tipped Occupation Code (TTOC) identifies a job that normally receives tips. Under the One Big Beautiful Bill Act, employees in certain tipped jobs can claim a tax credit on the tips they report. The IRS defines what counts as a tip and which jobs count as tipped occupations.

For tax years 2026 through 2028, employers report tipped employees on Form W-2 using two pieces of information:

  • The Treasury Tipped Occupation Code (TTOC) for the employee's role

  • The total amount of reported cash tips

In Patriot, you assign a TTOC to each employee who earns voluntary tipped wages so the correct information appears on their W-2s for tax years 2026 through 2028.

How to Add a TTOC to an Existing Employee

To add a Treasury Tipped Occupation Code (TTOC) to an employee who is already in Patriot:

  1. Go to Payroll > Employee List > [Employee Name] > Pay Info.

  2. Click the Edit Pay Info button.

  3. Find the Pay Rate information for the role that receives tips.

  4. Check the Receives Tips box to show that tips may be part of the employee's pay.

  5. In the Treasury Tipped Occupation Code (TTOC) dropdown, choose the code that applies to this role, or select None Apply.

  6. Repeat these steps for each pay rate or role that receives tips.

  7. Click Save Employee.

How to Add a TTOC for a New Employee

When you add a new employee, you also choose whether the employee receives tips and, if so, the employee's Treasury Tipped Occupation Code (TTOC). For the full process, see the help article How to Add a New Employee.

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