TTOC Setup Instructions

Here is an email draft that was created by COFO135 to send to your clients:

Subject: 🚨 URGENT: Action Required - New TTOC Reporting Requirement for Tipped Employees

Dear Client,

Due to changes under the One Big Beautiful Bill Act (OBBBA), employers are now required to report a Treasury Tipped Occupation Code (TTOC) for employees who earn tips. The IRS has published a list of qualifying occupations and corresponding TTOC codes that must be used for reporting purposes. [irs.gov]

To ensure your payroll records remain compliant, please review your employee roster and identify all employees who receive tips.

Action Required:

Review all employees who earn tips.
Determine the appropriate TTOC code for each tipped employee using the IRS occupation list.
Follow the steps below to Create a Job in iSolved
Assign the Job to all employees that earn tips
1. Payroll Vault can do a bulk import if you have one Job to update employees. Please send your Payroll Specialist the correct TTOC code.
Complete this update as soon as possible. We must have these updated by 12/15/26

Instructions to Update Employee Records:

Client Management – Jobs
- Add Job for each tipped type (refer to TTOC code list)
- Assign Job to employees
Employee Management – Jobs
- Add TTOC codes at this level to override the Client Management - Jobs

Failure to update tipped employee records may result in inaccurate year-end reporting and could affect employees' ability to properly claim benefits related to qualified tips.

If you have any questions or need assistance identifying the correct TTOC code, please refer to the IRS list or contact your Payroll Specialist.

Thank you for your prompt attention to this important compliance update.

Best Regards,