IRS Angers Restaurants, Waiters with Tip Change

Thursday, 05 September 2013 | by Pat's Picks

Tips are on the menu again this morning. Yesterday it was the Pete Wells column in the Times saying tips don’t do much to improve service. Today the Wall Street Journal says the IRS is about to start forcing restaurants to report automatic service charges not as tips, but as regular income.  Waiters, as you might imagine, don’t like that. The change, which is set to go into effect in January, isn’t popular with restaurants either because it’s likely to make payroll accounting much trickier.

SOURCE: Wall Street Journal