Monthly Archives: November 2013

Nov 4, 2013  |   By Elizabeth Sigler →

Automatic Gratuities: New IRS Guidance Goes Into Effect January 2014

Beginning January 2014, the IRS will begin enforcing guidance it published in a June 2012 ruling classifying automatic gratuities on restaurant checks as service charges and not tips. Many restaurants include automatic gratuities on checks for large parties or in the event of special promotions or discounts (Groupon or Scoutmob deals, for example) to ensure that servers get fair tips. Because automatic gratuities remove the     Continue reading

Posted in Best HR Practices, Fair Labor Standards Act, Minimum Wage, Overtime, Wage Payment   |