Tag Archives: Hospitality Industry

Restaurant Employers Take Note—the Fifth Circuit Offers Instruction on Proper Deductions from Credit Card Tips

The Fifth Circuit recently decided how much a restaurant employer could deduct from an employee’s tips received by credit card to offset the costs associated with collecting and distributing the tips. In Steele v. Leasing Enterprises, Limited, the Fifth Circuit concluded the employer can only deduct the direct costs associated with paying out the tips. … Continue reading this entry

Automatic Tipping: Impact of IRS Rules Change on the Hospitality Industry

By Jessica Glatzer Mason and Tax Partner Michael J. Donohue In 2014, restaurants and other employers in the hospitality industry will be subject to new IRS reporting and withholding rules relating to automatic tips charged to large groups of patrons. Background. Employees are required to report cash “tips” of $20 or more to their employer … Continue reading this entry