How to Untangle the Confusion About Tips and Service Charges

Download Email
In the News

How to Untangle the Confusion About Tips and Service Charges

By Jay Starkman and Alex Nadal

When a customer pays the bill at a restaurant, the difference between paying a tip or a service charge is usually not a big deal. But for the restaurant owner (the employer), the server (the employee), and the Internal Revenue Service (IRS), the difference can be a huge deal.

Wage and hour and tax reporting rules for employers are complicated. They vary widely by state, and requirements are changing all the time. Employers, especially those in service industries such as restaurants, hotels or salons, should understand the distinctions and how they impact wage calculations and employee and tax reporting requirements under the law.

As reported in the Business Journals

In the News

Employees With Autism Bring Benefits and Challenges to the Workplace

"Most forward-looking employers understand the value of hiring a diverse workforce, but it’s easy for best efforts to get tripped up, especially when diversity involves what’s becoming known as neurodiversity."

Engage PEO HR Manager and Assistant General Counsel, Vanessa Matsis-McCready, shares her insights on hiring and working with people on the autism spectrum.

Read this news

In the News

​Performance Reviews: Why managers should love them — not leave them

Yes- some managers and employees have a love-hate relationship with performance reviews. They recognize the value of tracking performance and rewarding employees for a job well done, but hate the overall process.

Some companies have gone as far as eliminating annual reviews altogether. Still, most organizations have some form of employee evaluation process in place, which isn’t a bad thing. With a little planning, a lot of commitment and regular dialogue, a performance management process can be a very good thing for most companies.

Learn More

Strategic Partners

Learn more about our many strategic partners ready to help elevate and engage your business.

See full list here

The Expect More Philosophy

We expect more, and so should you!

Learn more