Look out restaurants. As of January 1, 2014 automatic tips for servers will need to be included in payroll. That means reporting tips as wages and paying payroll taxes. That also means more tax expenses to restaurants and servers will need to wait longer to receive those hard earned dollars. Read more here.
IRS to Restaurants-Tips on Large Group Checks Are Wages
About the Author: Bette Hochberger, CPA, CGMA
Bette is the founder of the firm that bears her name. After launching her career in private accounting with technology startups and nonprofits in Boston and Miami, she transitioned to Public Accounting at large regional firms. She founded her firm so she could focus on the needs of small business owners instead of chasing billable hours with large corporations.
