Home › CFR › Title 26 › Part 31 › §31.3401(a)(16)-126 CFR §31.3401(a)(16)-1 — (a)(16)-1 Tips.Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗Copy linkTips paid to an employee are excepted from wages and hence not subject to withholding if—(a)The tips are paid in any medium other than cash, or(b)The cash tips received by an employee in any calendar month in the course of his employment by an employer are less than $20.