{"id":822,"date":"2014-01-20T15:55:51","date_gmt":"2014-01-20T22:55:51","guid":{"rendered":"http:\/\/unifypayroll.com\/?p=822"},"modified":"2014-01-20T16:08:11","modified_gmt":"2014-01-20T23:08:11","slug":"a-heads-up-to-restaurant-owners","status":"publish","type":"post","link":"https:\/\/unifypayroll.com\/archive\/2014\/01\/20\/a-heads-up-to-restaurant-owners\/","title":{"rendered":"A Heads Up to Restaurant Owners"},"content":{"rendered":"

The IRS has announced their intent to “to more closely examine the taxation of tips and service charges in 2014” (via Accounting Today<\/a>). \u00a0Now, we all know that employees are reluctant to report all their tips, but with the additional scrutiny we are expecting we are advising our clients to be diligent in their efforts to assure compliance with tip reporting requirements.<\/p>\n

The IRS has put together a Guide to Tip Income Reporting<\/a> that you can hand out to your staff that explains the employee’s responsibility and answers frequently asked questions. A few examples:<\/p>\n

Do I have to report all my tips to my <\/strong>
\nboss?<\/strong>\"tips\"
\nIf you received $2\u00180.00 or more in tips
\nin any one month, you should report
\nall your tips to your employer so that
\nfederal income tax, social security and
\nMedicare taxes, and maybe state in\u00ad
\ncome tax can be withheld.<\/p>\n

Do I have to report all my tips on <\/strong>
\nmy tax return?<\/strong>
\nYes. All tips are taxable income and
\nshould be reported on your tax return.<\/p>\n

I was told that I had to report only a <\/strong>
\ncertain percentage of my total sales <\/strong>
\nas tips. Is this true?<\/strong>
\nNo. You must report to your employer
\nall (100%) tips you receive, except for
\nthe tips from any month that do not
\ntotal at least $\u00180.00.<\/p>\n

Sometimes I don\u2019t get tips directly<\/strong>
\n from customers, but rather from<\/strong>
\n another employee. Do I need to<\/strong>
\n report those tips?<\/strong>
\nYes. Employees who receive tips from
\nanother employee are required to report
\n\u201ctip-outs.\u201d Employees often disburse
\ntips out of their earned tips to another
\nemployee (tip-outs). Remember, all tips
\nare taxable income.<\/p>\n

Do I have to report tip-outs that I <\/strong>
\npay to other employees?<\/strong>
\nNo. You report to your employer only
\nthe amount of tips you retain. However,
\nyou must maintain records of tip-outs
\nwith your other tip income (cash tips,
\ncharged tips, split tips, tip pool).<\/p>\n

If you have any questions about how to comply or what is required, please don’t hesitate to give us a call. Unify has a unique specialty in restaurant payroll and our software is equipped to handle tip reporting, FICA tip credit, tip make-up, tipped overtime, and other restaurant payroll situations.<\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

The IRS has announced their intent to “to more closely examine the taxation of tips and service charges in 2014” (via Accounting Today). \u00a0Now, we all know that employees are reluctant to report all their tips, but with the additional scrutiny we are expecting we are advising our clients to be diligent in their efforts […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3,6,8],"tags":[18,17],"class_list":["post-822","post","type-post","status-publish","format-standard","hentry","category-compliance","category-irs","category-payroll","tag-restaurant","tag-tips"],"_links":{"self":[{"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/posts\/822","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/comments?post=822"}],"version-history":[{"count":6,"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/posts\/822\/revisions"}],"predecessor-version":[{"id":830,"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/posts\/822\/revisions\/830"}],"wp:attachment":[{"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/media?parent=822"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/categories?post=822"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/unifypayroll.com\/archive\/wp-json\/wp\/v2\/tags?post=822"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}