Tag Archives: IRS Ruling Tips vs. Service Charge

FICA Reporting Compliance for Restaurant Service Charge Delayed until 2014

Restaurant owners and managers can breathe easier now that the FICA reporting compliance requirements have been delayed…at least for a little while. Based on feedback from businesses affected by Rev. Rul. 2012-18’s differentiation of tips versus service charges, the IRS … Continue reading

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New IRS Ruling Defining Tips versus Service Charges

Restaurants will soon have to evaluate whether charging a service charge on a patrons bill is beneficial to their bottom line.  A service charge is treated as ordinary income and goes directly to their top line and is taxable.  For … Continue reading

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