IRS to begin enforcing tip vs. service charge rule in 2014
Regardless of what you call it, tips are amounts customers willingly determine and leave of their own accord; service charges, sometimes called automatic tips, are added to the bill. Tips are taxable when employees report them to their employers; service charges are immediately taxable. The IRS will begin enforcing this rule on Jan. 1, 2014.
To continue reading this page, become an
HR Specialist Premium Plus member today!
HR Specialist Premium Plus member today!
Your subscription includes:
Ask the Attorney: Answers to your HR legal questions- Compliance Guidance: Access to 7,000 HR news articles, updated daily, sorted by state
- State-by-State: Summaries of HR laws in all 50 states
- Manager's Training Library: a treasure trove of printable training guides
- Memos to Managers for simple staff training
- The Hiring Toolkit: Job descriptions, interview questions & exemption tests for 200+ positions
- Webinar of the Week: Train instantly with recent recordings
- Sample Policies, Weekly Podcasts, Q&As and much, much more ...
