Vol. XV, No. 2, February-March 2015

  1. Editor's travelogue & more
  2. Vietnam's largest FEC opens
  3. How much Americans love pizza
  4. Real live escape game venues continue to multiply
  5. Under-the-radar bar trend
  6. Announcing Foundations Entertainment University 2.0
  7. How to boost your posts on Facebook
  8. National survey results for participation in FEC activities
  9. The power of live events
  10. Free scholarships to Birthday University, April 2
  11. The full scoop on market & financial feasibility studies
  12. Nationwide laser tag participation survey results to be revealed at Laser Tag Convention
  13. The rise of super Digital Hiving
  14. The no vacation trend continues
  15. IRS changes rules on automatic group tips

[ Index of Previous eNewsletters ]

IRS changes rules on automatic group tips

New IRS rules on how restaurants must classify automatic gratuities that are often charged for groups went into effect January 1, 2014. The IRS is likely to start cracking down on stragglers who haven't started following the new rules. These new rules may apply as well to entertainment centers. You should check with your tax consultant.

Under the new rules, restaurants have a choice:

  • They can ditch the automatic gratuity and make it an optional tip, or
  • They can charge an automatic service charge, which will then be subject to both sales and payroll tax withholding and require restaurants to pay servers the full minimum wage.

Restaurants may suggest tips on large parties, but the IRS Ruling 2012-18 states customers must maintain the unrestricted right to determine the tip amount and generally who receives it.

Vol. XV, No. 2, February-March 2015

  1. Editor's travelogue & more
  2. Vietnam's largest FEC opens
  3. How much Americans love pizza
  4. Real live escape game venues continue to multiply
  5. Under-the-radar bar trend
  6. Announcing Foundations Entertainment University 2.0
  7. How to boost your posts on Facebook
  8. National survey results for participation in FEC activities
  9. The power of live events
  10. Free scholarships to Birthday University, April 2
  11. The full scoop on market & financial feasibility studies
  12. Nationwide laser tag participation survey results to be revealed at Laser Tag Convention
  13. The rise of super Digital Hiving
  14. The no vacation trend continues
  15. IRS changes rules on automatic group tips

[ Index of Previous eNewsletters ]