“Tips and Service Charges are Taxed Differently,” FSR Magazine
In an article published by FSR Magazine on July 31, 2017, Julian A. Fortuna provides insight on the Internal Revenue Service’s (IRS) updated fact sheet explaining the difference between tips and service charges. Service charges are generally wages, and they are reported to the employee and the IRS in a manner similar to other wages. On the other hand, special rules apply to both employers and employees for reporting tips. For the full article please visit the FSR Magazine website.