1. Except as otherwise provided in subsection 2, an employer shall:

(a) Make a copy of each report that an employee files with the employer pursuant to 26 U.S.C. § 6053(a) to report the amount of his or her tips to the United States Internal Revenue Service; and

(b) Submit the copy to his or her private carrier upon request and retain another copy for his or her records or, if the employer is self-insured or a member of an association of self-insured public or private employers, retain the copy for his or her records.

2. An employer who maintains his or her records concerning payroll by a computerized program or process that can produce a report on all employees which indicates:

(a) The amount of tips reported by each employee pursuant to 26 U.S.C. § 6053(a); or

(b) The amount of tips allocated to each employee pursuant to a formula applied by the employer, whether by agreement of the employees or by imposition of the employer,

may satisfy the requirements of subsection 1 by submitting a copy of the report to his or her private carrier and maintaining another copy of the report for his or her records.

3. An employer who is not self-insured or a member of an association of self-insured public or private employers shall pay the private carrier the premiums for the reported tips at the same rate as he or she pays on regular wages.

4. The private carrier, self-insured employer or association of self-insured public or private employers shall calculate compensation for an employee on the basis of wages paid by the employer plus the amount of tips reported by the employee pursuant to 26 U.S.C. § 6053(a). Reports made after the date of injury may not be used for the calculation of compensation.

5. An employer shall notify his or her employees of the requirement to report income from tips to calculate his or her federal income tax and to include the income in the computation of benefits pursuant to chapters 616A to 616D, inclusive, and chapter 617 of NRS.

6. The Administrator shall adopt such regulations as are necessary to carry out the provisions of this section.

(Added to NRS by 1985, 1443; A 1987, 598; 1991, 2411; 1993, 722, 1865; 1995, 531, 2026; 1999, 213, 1768; 2001, 2449)