When do employers start complying with ATIP if they elect ATIP on Form 8027?
Employers must begin participating in ATIP at the beginning of the calendar year with the first payroll period ending on or after January 1. Employers electing to participate in ATIP for 2008 will begin attributing tips with the first payroll period ending on or after January 1, 2008. ATIP participation is on an annual basis; therefore, employers may not begin participation in the middle of the year.