Posts made in October, 2013

Required Gratuities to be treated as Non-Wage Tips

By on Oct 7, 2013 in Uncategorized | 0 comments

As of January 1, 2014, the IRS will treat mandatory service charges — such as those frequently added to restaurant tabs for large groups — as “service charges” rather than “tips.”  As a result, employers charging automatic gratuities will want to review their existing policies to make sure they comply with the new rule. Background Common practice at many restaurants...

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