Restaurants and other employers in the hospitality industry are reminded that, as of January 2014, the Internal Revenue Service (IRS) will expect businesses to comply fully with its Revenue Ruling 2012-18. Among other things, this Ruling distinguishes between “tips” and “service charges.” This distinction is key, as the IRS only considers the latter wages, and … Continue Reading
Serving Up Trouble: IRS Ruling on Automatic Tips
Posted in Hospitality Industry, IRS, Restaurants, Service ChargesRestaurants and other employers in the hospitality industry are reminded that, as of January 2014, the Internal Revenue Service (IRS) will expect businesses to comply fully with its Revenue Ruling 2012-18. Among other things, this Ruling distinguishes between “tips” and “service charges.” This distinction is key, as the IRS only considers the latter wages, and … Continue Reading
