Small business owner know that “time is money” isn’t just a saying, it’s a reality. Time management is key because bungling this can lead to lost revenue. If you’re running up against the clock operating your business, read these five key time management tips for small business owners.
• An amount is automatically added to the bill without first consulting with the customer after the meal is served. Think about group meals, banquets, etc. Generally when serving more than 8 at one table in one ticket.
• The customer and the business agree to a suggest tip amount before the service or event. Think preplanned gathering, education meeting with a meal, conference, etc.
• Menus, brochures, ads, or other materials state that tips, gratuities, or service charges will automatically be Read More
Following is the tax responsibility for individuals for November, 2015.
If you are an employee who works for tips and received more than $20 in tips during October, you are required to report them to your employer on the Internal Revenue Service Form 4070 no later than November 10. Your employer is required to withhold FICA taxes and income tax withholding for these tips from your regular wages. If your regular wages are insufficient to cover the FICA and tax withholding, the employer will report the amount of the uncollected withholding in box 12 of your W-2 for the year. You will be required to pay the uncollected withholding when your return for the year is filed.
If you work in an occupation where tips are part of your total compensation, you need to be aware of several facts relating to your federal income taxes:
• Tips are taxable – Tips are subject to federal income, social security, and Medicare taxes. The value of non-cash tips, such as tickets, passes, or other items of value, is also income and subject to taxation.
• Include tips on your tax return – You must include in gross income all cash tips received directly from customers, tips added to credit cards, and your share of any tips received under a tip-splitting arrangement with fellow employees.
• Report tips to your employer – If you receive $20 or more in tips in that month, you should Read More
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