Tip Income

Dictionary Says

Definition of 'Tip Income'


Income that a service professional earns that is not part of a regular wage. Tip income can come from a gratuity left by a customer at a restaurant, money received by a porter for carrying luggage to a hotel room, or from other activities that are not covered by the employer. Tip income can be considered a secondary form of income.



Investopedia Says

Investopedia explains 'Tip Income'


Some businesses, such as restaurants, assume that employees will earn tips and will thus provide a lower hourly wage rate. If an individual collects tips over a given amount during a calendar month, it must be reported to the employer and to the government, since taxes have not been withheld like they are for normal income.



comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center