Mandatory Tip Charges Will Be Disappearing in 2014

We have all had the experience of going to a restaurant with a large party and finding that 18% tip charge on our bill. We can also find them on meals delivered to our hotel rooms. Any company that opposes those charges must be on notice that beginning in 2014 automatic gratuities are classified as service charges rather than tips. This means that while the employee will be taxed the same, the employer will lose a special tax credit available for paying its share of payroll taxes on the gratuities. For the rest of us the impact means there will be no more automatic gratuities created but rather suggestions to pay a gratuity.

To see the IRS ruling click here.

Need insurance for You, Your Family or Your Business?
We can match you to a qualified, local insurance expert!
Further Reading
The main reason that Americans go bankrupt is because of unpaid medical bills. Most of these people carried Health insurance, but didn't have enough coverage. It's your health, and as a consumer, your responsibility, to look out for yourself. As ...
Imagine, you’re getting away from the cold weather for a nice Caribbean cruise. You’ve been planning this trip for more than six months. Your bags are packed and ready. then a major snow storm strikes. cancelling all flights out of your local air...
Workers compensation cases touch many lives and many industries. Insurance employees, medical professionals, government officials, employees and employers all influence each other in different ways. And of course, a main motivator for everything in l...
Life insurance provides your beneficiaries with financial assistance. In addition to purchasing adequate life insurance coverage, understand if you should list it on your will. Probate Versus Nonprobate Assets When you die, your estate goes int...
Consumers who are willing to accept the generic form of popular medication brands will soon have the benefit of saving hundreds or thousands of dollars. During the following two years, six of the 10 most popular drugs will lose their patents. This me...