OBBBA Compliance in Idaho: W-2 Requirements for Tipped Employees (Conforming)

Idaho conforms to the One Big Beautiful Bill Act (OBBBA). Here's what that means for employers with tipped employees in Idaho.

State Conformity Status: Conforming

Because Idaho conforms to OBBBA, your tipped employees can claim both the federal AND state deductions for qualified tips and overtime premiums. This means the data you report on W-2s directly benefits your employees at both tax levels.

W-2 Reporting Requirements in Idaho

Regardless of state conformity, all Idaho employers with tipped employees must:

1. Track qualified tips separately — voluntary cash and credit card tips vs. mandatory service charges
2. Calculate the 0.5x overtime premium for each employee's overtime hours
3. Assign a TTOC code to each tipped employee based on their primary role
4. Report on W-2s — Code TP (qualified tips) and Code TT (overtime premium) in Box 12, TTOC code in Box 14b

Key Deadlines

• 2025 (transition year): IRS offers penalty relief for good-faith compliance efforts
• 2026 onwards: Full enforcement — penalties of $60-$680 per incorrect W-2
• January 31: W-2 filing deadline for the prior tax year

Common TTOC Codes for Idaho Businesses

The most common tipped occupations in Idaho include:

• FB01 — Waiter/Waitress
• FB02 — Bartender
• FB08 — Barista
• HL06 — Valet Parking
• PC01 — Hairdresser/Stylist

See the complete TTOC code list for all occupation categories.

Related Guides

• What Is OBBBA? Complete Employer Guide
• IRS Penalties for Incorrect W-2s
• Complete TTOC Code List
• Qualified Tips vs. Service Charges

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