Introduction
Imagine this scenario – you have hired a catering company to cater an event for you. The company performs its obligations, providing both the food and catering staff to ensure your attendees are well fed and taken care of. Happy at the conclusion of the event, you pay the company in full, and provide…
Employers whose workers earn most of their compensation through tips, such as restaurant employees, know that they walk a fine line to ensure compliance with the Fair Labor Standards Act (“FLSA”) and numerous other laws. Last month the Fifth Circuit rejected a program instituted by a restaurant operator in Texas that deducted certain fees before…
Effective Jan. 1, 2014, the Internal Revenue Service (IRS) will recognize automatic gratuities, a percentage automatically added to a restaurant bill, as a service charge, rather than a tip. The IRS ruling on automatic gratuities isn’t new. This was the result of a June 2012 tax ruling that was delayed to give restaurants and related businesses more time to comply.
Continue Reading Think You Are Leaving a Tip After a Nice Meal, Think Again; You May Be Leaving Someone’s Wages – IRS Ruling On Automatic Gratuity Begins January 2014
