Tag: Restaurants


Jan

31

2014
Automatic Gratuities as Service Charges

Automatic Gratuities as Service Charges

Effective January 1st restaurants that put service or automatic gratuity on bills for larger parties now have to show these charges as taxable sales/service charges (not as tips) and are subject to all payroll tax withholding. That added fee will need to be included with their payroll, meaning workers will have to wait to get the extra cash. Restaurants are required to report to the...

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Jan

15

2014

Risky Business > Employee vs. Independent Contractor

It is important that employers understand the distinctions between employees and independent contractors. Classification can be a complex task, prone to mistakes, myths, misunderstandings, and classification errors – whether innocent or intentional – can be costly to the employer. With today’s tax revenue shortfalls, government agencies are cracking down on misclassification of workers. Here are two examples that have made recent headlines: FedEx to Pay $2.3 Million...

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Jan

01

2014

I-9 Compliance Basics for Employers

While ASAP does not provide tax or legal advisory services, there are a number of items to review regarding the NEWLY PUBLISHED federal Form I-9 Employment Eligibility Verification. This list should not be construed as all-inclusive resource – please refer to the IRS and State for additional resources. (All content listed in blue/underlined below is a hyperlink directing you to the appropriate resource page). Resources...

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Feb

07

2013

The Future of the Postal Service and Its Impact on Business

The U.S. Postal Service, challenged with financial losses, announced that it will stop delivering mail on Saturdays starting in August. Many businesses and consumers may not be too affected by changes to the USPS as many have already converted processing functions to online platforms such as online bill pay and electronic document storage and delivery. We are in the age of “e” – electronic services...

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Mar

15

2012

Background Screening 101

HIRE THE RIGHT PERSON – HIRE WITH EASE With ASAP’s instant and affordable Background Screening Services, you can hire with ease knowing you are hiring the right person for your organization. 50 percent of all resumes and applications contain false information 33 percent of all business failures are due to employee theft 18 percent of all violent crimes ocurr in the workplace Get the facts...

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Feb

14

2012

Restaurant Tip Credit

Don’t forget to tip your servers? If you are a restauranteur, don’t forget the Tip Credit. Food and beverage establishments may take a business tax credit in the amount equal to the employer’s FICA tax obligation (7.65%) attributable to tips in excess of those treated as wages for purposes of satisfying the federal minimum wage requirement. ASAP can help you and your CPA calculate the...

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Jun

09

2011

New Regulations for Employers with Tipped Employees

The U.S. Department of Labor (DOL) has issued regulations that will have an immediate impact on restaurants with tipped employees. The new, amended regulations effective May 5, 2011, address a number of areas under the Fair Labor Standards Act (FLSA). The amended tip regulations pertain to three basic areas: 1.     the ownership of tips 2.     tip-pooling arrangements 3.     the required notice employers must give to...

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Sep

07

2010

An Employers Guide to Tips

Tipped employees are required to report and pay taxes on all their wages – including tips. Employers are stuck in the middle because they are responsible for withholding Federal income tax, State income tax, and FICA from wages when processing payroll. Each party has their own responsibility in reporting tips. It is important to follow and comply with IRS tip reporting rules. Here is a...

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