Before the act, the Internal Revenue Service (IRS) defined all cash and non-cash tips received by an employee as income and subject to federal income taxes. All tips received by an employee in any calendar month were subject to Social Security and Medicare taxes and must be reported to the employer. Consistent with the IRS and federal wage and hour laws, the act defines “qualified tips” as amounts voluntarily paid by patrons and includes any tips obtained through a tip share.
Effective the tax year starting January 1, 2025, employees who “customarily and regularly receive tips on or before December 31, 2024, as provided by the Secretary” (the act mandates the secretary of the treasury (or the secretary’s delegate) to publish a list of occupations which “customarily and regularly received tips on or...
There’s a lot of information around The LAPD has issued a rare public statement pushing back on what it says is “misinformation” and “false claims” circulating in media reports about the investiga...