When restaurant staff receives tips, both employee and employer incur legal obligations to the IRS to correctly record the tip amounts, comply with reporting requirements, and pay income and payroll taxes. For the restaurant operator, it’s critical to get these details correct from the start to avoid unnecessary penalties. This article will cover how to record tips in accounting and what the tax responsibilities look like from the employer and employee sides.
Read the full Blog Post: https://rasiusa.com/blog/how-to-record-tips-in-accounting
Watch the full Video: https://youtu.be/o0XmOorroGM
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