Tips transferred from workers to employers (in billions)

Using W-2 data on reported tips (in billions) Using preferred data source: Total tips in full service restaurants + W-2 tips outside of food service (in billions)
Total tips earned $32.0 $36.4
Potentially transferred tips $22.9 $26.0
Tips transferred from workers to employers
Low estimate $0.460 $0.523
Preferred estimate $5.1 $5.8
High estimate $11.6 $13.2

Source: EPI analysis  of IRS W-2 data, Table 5.A; BLS Quarterly Census of Employment and Wages; Census 2016 Service Annual Survey, Table 2; Exhibit 4.1 in Michael Lynn, “Should U.S. Restaurants Abandon Tipping? A Review of the Issues and Evidence,” Psychosocial Issues in Human Resource Management vol. 5, no. 1 (2017), 120–159; and Current Population Survey microdata

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