This firm finally found that out. Oh, sure, they thought they had the rules down pat. They figured they’d been following Section 530- but, it turns out not as carefully as they thought.
Tag Archives: EMPLOYEE
Tip Jars
We have a slew of clients who have a tip jar. (Yes, these are coffee shops, by and large.) And, our practice has been to count the funds in the tip jar every hour, and divide those funds among each person working that hour equally. We then add those funds to the gross amounts which are subject to income and FICA taxes (and subtract the tips distributed as “cash advance”).