Great news for cafés, salons, garages, and every other tip-friendly shop on Main Street:
On July 4, 2025, President Donald J. Trump signed H.R. 1 – the One Big Beautiful Bill into law. Nestled inside is § 70201, the brand-new “No Tax on Tips” provision, which lets service-industry workers deduct up to $25,000 in properly reported cash or card tips from their federal income taxes each year. That deduction starts with the 2025 tax year and phases out for high earners (single filers over $150 k / joint filers over $300 k).Congress.gov
For owners, the same amount employees deduct is also excluded from FICA/FUTA wages—meaning you no longer pay your share of payroll tax on that portion.Ways and Means
How TipAssis™ Makes the Law Effortless
TipAssis™ is Jüulio’s one-click bridge between what Congress just passed and your daily checkout flow.
| What the law requires | How TipAssis™ handles it inside Jüulio™ |
|---|---|
| Track “qualified tips” and keep them on the receipt/employee record | Every tip—whether added on our POS, entered in Jüulio™ Go, or scanned from Tap-to-Pay—lands in its own ledger with employee and sale IDs attached automatically. |
| Cap the annual exclusion at $25 k and apply the AGI phase-out | Real-time dashboards show each worker’s running total; alerts flag anyone nearing the $25 k ceiling or AGI limits. |
| Exclude tips from employer payroll tax | Payroll exports mark qualified-tip wages as “non-taxable,” so your payroll platform or accountant can skip the FICA line. |
| Keep audit-ready records | TipAssis™ stores Form 4137 equivalents and employer statements in a tidy PDF pack, ready for your year-end files or IRS request. |
Key Features You’ll Love
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Seamless Switch-On – Flip Enable TipAssis™ in Settings and choose default tip suggestions (or let guests type any amount).
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Automatic Allocation – Split a table’s tips among staff with one check-box, or follow your own pool formula.
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Instant Reporting – Download employee Tip Summaries or a full business Tip Ledger anytime for your CPA.
Super-Charge Savings with TransCost™ + TierPro™
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TransCost™ wipes out card fees on the same transactions TipAssis™ records—so you keep every dollar of the tip.
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TierPro™ automatically shrinks (and can even eliminate) your Jüulio™ subscription as sales climb.
Stacking all three tools means lower merchant fees and lighter taxes—money you can roll back into growing the business or rewarding your team.
Quick FAQs
| Question | Answer |
|---|---|
| When does this start? | Tips received Jan 1 2025 forward are eligible. Your employees will claim the deduction on the 2025 return they file in early 2026.Congress.gov |
| Does it cover mandatory service charges? | No. Only voluntary tips qualify (the law’s language mirrors existing IRS rules). |
| What if an employee earns more than $25 k in tips? | TipAssis™ still tracks everything. Amounts above $25 k remain taxable, unless the employee deposits them into a Roth IRA/ABLE account the same year (TipAssis™ flags these cases for you).Congress.gov |
| Will states follow the federal lead? | Several are already drafting similar bills. We’ll update TipAssis™ state settings as new laws pass.Kiplinger |
Get Started Today
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Update to the latest Jüulio™ Web or Jüulio™ Go release.
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Toggle on TipAssis™ under Payments → TipAssis™.
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Brief your staff
Have a unique tip-sharing arrangement or questions about compliance? Reach our support team—real humans in Yuma, AZ are ready to help.
Final Word
Congress wrote the tax break; TipAssis™ makes sure you actually keep it.
Join thousands of local businesses already turning gratuities into genuine take-home pay—without the paperwork headache.
Disclaimer: This article is for information only and isn’t tax advice. Always consult a qualified tax professional for guidance on your specific situation.
