TTOC Code PC05: Barber — W-2 Box 14b Reporting Guide
TTOC code PC05 is the Treasury Tipped Occupation Code for Barber positions, classified under the Personal Care category. This code must appear in Box 14b of the employee's W-2.
When to Use Code PC05
Assign TTOC code PC05 to any employee whose primary tipped role is Barber. If an employee works multiple tipped positions, use the code for the role where they earn the most tip income.
Key Considerations for Barber Employers
Barbershops were specifically included in the OBBBA expansion of tip credit eligibility. Tips left by clients for haircuts, shaves, and grooming services all qualify as voluntary tips under the new law.
What to Track for Barber Employees
For each pay period, record:
- Cash tips — reported by the employee (Form 4070 or your own reporting system)
- Credit card tips — from your POS system or payment processor
- Mandatory service charges — auto-gratuity, service fees, etc. (these are NOT qualified tips)
- Overtime hours — hours over 40/week for the 0.5x premium calculation
W-2 Reporting
- Box 12, Code TP: Year-to-date qualified tip total (cash + CC tips only)
- Box 12, Code TT: Year-to-date qualified OT premium (overtime hours × hourly rate × 0.5)
- Box 14b: PC05
Related Codes in Personal Care
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