Tag Archives: service charge

Tips on tip reporting

If you are like millions of taxpayers who work in the service industry, you may receive tips. The tax code is clear; if you receive tips you must report them as income. Some employers have systems to make this easy, … Continue reading

Posted in Business Owner, customer service, Employee Benefits, employees, Filing Taxes, Payroll, Penalty, tax advice, tax planning, taxes, Uncategorized | Tagged , , , , | Leave a comment

Service charges vs. tips

Remember, service charges do not receive the same tax treatment as tips. Service charges are non-tip wages, and employers must treat them as such for tax withholding and filing requirements. Tips are payments made to employees by customers at the … Continue reading

Posted in Business Owner, deductions, Filing Taxes, Tax, tax bill, Uncategorized | Tagged , | Leave a comment