Skip to content

IRS To Count Automatic Gratuities As Wages, Not Tips : NPR

By Scott Neuman

Gratuity included? A new IRS rule could end, or at least curtail, the practice. The Internal Revenue Service will soon begin classifying automatic gratuities as service charges that are taxable as regular wages and subject to payroll tax withholding. Currently, they’re considered tips, and it’s up to the wait staff to report them as income.

“The change would mean more paperwork and added costs for the restaurants—and a potential financial hit for waiters and waitresses who live on their tips but don’t always report them fully.” – The Wall Street Journal

Read the Rest @ IRS To Count Automatic Gratuities As Wages, Not Tips : The Two-Way : NPR.

Government, looking out for the little guy ;)

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: