Automatic Tips To Be Treated As Taxable Wages
5 minutes read
We’ve all been out to a restaurant and received a bill where gratuity–usually around 18%–was included in the bill. This routinely occurs when larger groups dine together. However, this practice may be going extinct as a change in the tax rules starting January 1st, 2014 will view automatic gratuities as a “service charge”, which opens them up to be taxed as wages.