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The 80/20 Tip Credit Rule Still Stands

By HR, IRS, Legal, Payroll, Tips

In July, a federal court refused to block the U.S. Department of Labor (DOL)’s “80/20 rule,” which applies to employers taking the tip credit toward their federal minimum wage obligations. The DOL rule is intended to limit the amount of non-tip producing work that a tipped employee can perform when an employer is taking a tip credit. Here is a good article on the 80/20 rule from Fisher Phillips that restaurant owners should read to…

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Tips Must Be Handled Differently Than Service Fees

By IRS, Tips

Restaurants are increasingly adding service fees to customers’ bills. However, service fees are not synonymous with tips, and employers must follow Department of Labor (DOL) regulations for distributing tips. Service Fees vs. Tips There may be instances where restaurants want to add a service fee to a guest’s check at the point of sale. Examples include: Upsell fees for special menus Banquet event fees Takeout or delivery fees Bottle service or corkage charges Service fees…

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What You Need to Know about IRS Forms 1095-A, 1095-B and 1095-C

By IRS, Legal

Under the Affordable Care Act (ACA), the IRS requires all employers and qualified health plan providers to report information about their offers of health coverage and health coverage enrollment using tax Forms 1095. What is the Difference Between Forms 1095-A, 1095-B Form 1095-C? Form 1095-A The 1095-A form (Health Insurance Marketplace Statement) is for people who have health insurance through the Health Insurance Marketplace, often called an exchange. These are individuals who do not have…

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