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New bill incentivizes tipped employees

You could be pocketing more of your tips paid in cash under a new bill being circulated in the Wisconsin Legislature. Led by First District State Senator Andre Jacque and 33rd District State Representative Cody Horlacher, employees would see their cash tips exempt from the Wisconsin income tax. Jacque admits cash tips are probably not often reported, but says it should be part of a discussion on how to incentivize people to join the growing tourism workforce.   

According to Jacque, businesses will still be allowed to claim a tip credit moving forward, allowing them to pay employees as little as $2.33 an hour as long as the hourly wage plus tips add up to at least $7.25 an hour. If signed, it would be the first law of its kind in the country.

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