Service charges treated as tips for purposes of employer credit for social security taxes, etc

(a) In general Section 3121(q) of the Internal Revenue Code of 1986 is amended by adding at the end the following: In the case of any mandatory charge to which section 3(m)(2)(E) of the Fair Labor Standards Act applies, the portion of such charge described in subclause (I)(bb) of such section shall be treated as tips for purposes of this subsection.. (b) Effective date The amendment made by this section shall apply to amounts received on or after the date of the enactment of this Act.