When it’s a service charge. Revenue Ruling 2012-34 was issued by the Internal Revenue Service to provide guidance to employers and employees on the difference between tips and service charges as well as on certain reporting requirements. The ruling states, among other things, that service charges paid to employees are taxable as regular wages and not as tips. Although the IRS initially delayed enforcement
We have all lived in a highly regulated, pro-employee environment for years. Moreover, there is no hiding it; employers are bombarded by news about the hazards of having employees which illustrate the various pitfalls, often in painful detail. Yet, I continue to hear from employers desperate to terminate a problem employee, an employee who has been unacceptable “forever”, but whose personnel file reads
The Santa Monica City Council passed a minimum wage ordinance which becomes effective on July 1, 2016. The ordinance includes a phased increase to reach $15.00 in 2020 for most businesses, with a one year delay to 2021 for businesses with 25 or fewer employees and for qualifying nonprofits. The ordinance provides a higher wage for Santa Monica hotel workers of $13.25 on July
When I was sworn in as Chairman of the Board of the Beverly Hills Chamber of Commerce at last year’s Summer Garden Party, I announced that this would be “The Year of the Member”. It wasn’t just a good title for an Austin Powers movie, but a mantra for the idea that the time had come for the organization to rethink what