Publication 5111 — Gaming Industry Tip Compliance Agreement (GITCA) Benefits to Participants

Official source: IRS Forms, Instructions & Publications (https://www.irs.gov/pub/irs-pdf/p5111.pdf), retrieved 2026-10-03. U.S. Government work (17 U.S.C. § 105).

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1. To Participate:

n New employees must join within 60 days from date of hire

n Current employees must join within 60 days from agreement implementation date

n Employees must sign Appendix C and agree to report tips at or above the hourly tip rate

n Employees who drop out during the year are not eligible to join again until January of the

following year

2. Participating Employees:

n Will not be subject to a tip audit during agreement years

n Will not be subject to tip audits in prior years if employer had no agreement

n Will benefit from Coverage Adjustment reductions (10%, 20% or 15%)

n Will no longer need to keep detailed tip logs

n Will have higher income on their W-2 which may result in:

• Better terms when applying for loans (mortgage, car, and other personal loans)

• Increased Workers’ Compensation benefits, should you get injured on the job

• Increased Unemployment Compensation benefits should you need them

• Increase in other benefits (based on pay) that the company may offer such as life insurance

or disability payments that are based on income

• Increased Social Security and Medicare (FICA) benefits (the more you pay in, the greater

your benefits)

3. What will be withheld from your paycheck:

Example of Social Security and Medicare (FICA)* Withholding

*Employees share of FICA Tax of 7.65%; does not include income taxes

Employees who drop out during the year are not eligible to join again until January of the following year.

Publication 5111 (Rev. 2-2016) Catalog Number 65149G Department of the Treasury Internal Revenue Service www.irs.gov