Daily News All News  |  Subscribe  
Restaurant and Foodservice News
RSS
News |  Newsletters  |  Articles |  Blogs | Video |  TV |  QSR News  |  Casual Dining News  |  Onsite News  |  Chef News

New IRS rule could cut into restaurant workers' tips


Copyright: Fox News

January 7, 2014


Even as President Obama and progressive activists are trying to sell the nation on hiking the national minimum wage to help restaurant workers and other low-wage employees, the Internal Revenue Service is seemingly determined to make life harder for those same workers. A change in tax policy implemented Jan. 1 will prevent restaurant workers from collecting automatic gratuities — the added 18 percent fee many restaurants charge to groups of eight or more — as part of their tips. Instead, that added fee will be included in their payroll, meaning workers have to wait up to two weeks to get that extra cash and must pay additional taxes on it. It means less money in servers’ pockets and more for the federal government. “We had a lot of nervous servers when they first heard about it,” said Pat Forciea, marketing director for Hell’s Kitchen, an ...


Read More (opens new link to source)  |   All News



Note: The story above links to an external site and was free from registration requirements at the time it was selected. Because Foodservice.com has no control over information outside of our site, the availability and status is subject to change.




Thoughts and Comments?  Post as a member of Foodservice.com or Facebook below
Note that you must be registered to leave comments. Register or Sign in.




Top Stories
1. Michelle Obama's nutrition adviser banned from school lunch convention
2. Applebee's May Be Asking You to Put Your Phone Away
3. Murderers Are the Best Restaurant Workers
4. Fast Food Prices Jump Due to Drought, Minimum Wage Hikes
5. Are Smartphones Really Ruining the Restaurant Experience? It's Doubtful.
6. The Fallacy of the "Michelin Starred Chef"
7. Red Lobster Honors Grieving Widow Who Dined At Their Restaurant With Her Husband For Over 30 Years -
8. Study Finds Kids Prefer Healthier Lunches. School Food Lobby Refuses to Believe It.
9. From McDonald's To Organic Valley, You’re Probably Eating Wood Pulp
10. Friendships in kitchen and sex acts spark Aramark firings

Recent News
McDonald's growth is over
The man behind 19 Michelin stars
U.S. fast food brands receive mixed feelings in China
Why does noise continue to grow in restaurants?
2014 Best Franchise Deals
When Social Media Intrudes on Fine Dining
U.S. Restaurant Traffic Remains In The Doldrums
Chipotle defying fast-food industry's slump
Is Tipping the Future of Fast Food?
Have the Feds Made School Food Worse with Government-Approved Junk?




More like this:

McDonald's growth is over

U.S. fast food brands receive mixed feelings in China

2014 Best Franchise Deals

U.S. Restaurant Traffic Remains In The Doldrums

Chipotle defying fast-food industry's slump

Aramark under fire. Why did they get the prison food contract? Here's some insight.

Are Yelp Stars Killing McDonald's Brand Advantage?

How Starbucks can raise prices for your coffee and get away with it

The Fastest Growing Restaurant Chain You've Never Heard About

More schools offer free lunches, but who's paying?

Other Topics:

Business & Financial  (1763)

Chefs and Cooking  (1871)

Customer Service  (95)

Design  (21)

Equipment & Supplies  (27)

Food Cost Management  (64)

Food Safety  (210)

HR and Recruiting  (49)

Human Interest  (900)

Interviews  (6)

Legal  (261)

Marketing - Products  (207)

Marketing - Restaurant  (444)

Menu Development  (193)

Nutrition  (983)

Restaurant Management  (81)

Restaurant Spotlight  (87)

Sanitation  (27)

Startup  (21)

Technology  (142)

Trends  (110)

 




Copyright © 1996-2013 Foodservice.com ®. All Rights Reserved.