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