The IRS used to leave it up to the employee that was tipped to declare the money.

Starting on Jan 1, the establishment has to withhold those tips until payday so the waiter or bartender won’t get those tips that shift.

That’s not all. Restaurants have to withhold Medicare taxes, Social Security and federal income also.

Just to be accurate, this isn’t exactly new “news”. The IRS rolled out this rule June of 2012 but decided they needed to give the service industry enough time to make changes & comply properly.

Time is up.

What do you think about the change?

Good or bad for servers?

Good or bad for employers?

Good or bad for customers?

How is it going to effect you and your co-workers?

Do You Have Any Stories?

Post Your Comments Below.

Update: I have written a follow-up post to this post and you can read it here.

Thank you :)

Scott Young - Founder of:

www.NightclubBarAndRestaurantTraining.Com

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