Restaurants are rethinking the practice of adding in tips to the bills of large parties due to an updated tax rule, reports The Wall Street Journal. The Internal Revenue Service in January will begin classifying those automatic gratuities as service charges — which it treats as regular wages, subject to payroll tax withholding — instead of tips, which restaurants leave up to the employees to report as income, the WSJ reports. The change would mean more paperwork and added costs for the restaurants…
Reported by bizjournals 7 hours ago.
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