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

Simply Engaged Named One of the Best HR Blogs of 2018

Engage PEO's Simply Engaged - once again named among the ​Best HR Blogs by Fit Small Business.

Engage is the only national PEO blog named to the list.

Read this news

In the News

Workplace Violence: How to Prepare for the Unimaginable

Engage CEO Jay Starkman quoted in Entrepreneur magazine article on workplace violence..

Read this news

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