Ariz. Admin. Code § R6-3-1726 - Tips As Wages

A. Any tip, gratuity or service charge received by or for an employee in the course of employment from persons other than the employing unit shall be considered wages if:

1. The tip, gratuity, or service charge is received on or after January 1, 1986, and is reported by the employee in writing to the employing unit on or before the 10th day of the month following the month in which it is received; or

2. The employing unit has actual knowledge of tips, gratuities, or service charges not accounted for by the employee and either:

a. The tip, gratuity, or service charge is specified and collected by the employing unit; or

b. The tip, gratuity, or service charge is used by the employing unit on or after August 3, 1984, in order to conform to the minimum wage requirement of federal or state law.

B. No benefits shall be paid based on any tip, gratuity, or service charge which the claimant failed to report as specified in subsection (A), paragraph (1) of this rule, unless the provisions of subsection (A), paragraph (2) apply.

C. For the purposes of reporting and paying contributions on any tip, gratuity, or service charge described in subsection (A) and (B) of this rule, the date on which the employer compensates the employee for the pay period in which either the tip, gratuity, or service charge has been reported to the employer by the employee or in which the employer has allocated the tip, gratuity, or service charge to the employee shall be considered the date the tip, gratuity or service charge is paid.

Notes

Ariz. Admin. Code § R6-3-1726

Adopted effective March 16, 1988 (Supp. 88-1).