Rev. Rul. 78-335

FACTS

Rev. Rul. 66-369, 1966-2 C.B. 451, holds that the tax imposed by the Federal Unemployment Tax Act applies to tips received by an employee in the course of employment by an employer, to the extent that the tips are (1) reported in writing by the employee to the employer, and (2) taken into account by the employer to the extent permitted in determining the employee's compensation under the state minimum wage law.

HOLDING

For FUTA tax purposes, tips reported in writing to an employer are also wages to the extent they are taken into account by the employer in determining the employee's compensation under the federal minimum wage law.

EFFECT ON OTHER REVENUE RULINGS

Rev. Rul. 66-369, 1966-2 C.B. 451, is amplified.