It is worthwhile to encourage restaurant and bar employees to report tips accurately, although it may be difficult.

An issue facing many restaurant owners and managers concerns employee tips. For better or worse, many managers take the stance of employee tips (as well as their tax implications) as being the responsibility of the individual employee. At the same time, a number of savvy restaurant managers know they are entitled to the FICA tip credit and have made the most of it by utilizing a restaurant payroll service.

Although it can be difficult to get servers and bartenders to report their tips properly, the upside for the restaurant is a savings on their payroll taxes. Restaurant tip reporting also has the benefit of ensuring that staff is paying the correct amount in taxes. A payroll service for a restaurant usually encourages restaurant managers to remind their employees to keep a record of how much they receive in tips each shift, which makes the reporting process easier each payroll period.

For more information about FICA and required taxes on tip income, please visit the IRS’s website.

The post The FICA Tip Credit and Employee Compliance appeared first on Wizard Payroll Blog - The Official Blog of Wizard Payroll Service.

When you outsource your payroll, it is important to choose a vendor that you can trust. After all, you will be providing them with your sensitive personal information and that of your staff. There are many trustworthy companies out there, so your financial data is most safe when you take the time to choose the right provider. Another important aspect of your search is to find a small business payroll company that will process your payroll accurately and in a timely manner. It is usually a good idea to ask other business owners you trust about whom they use as their provider.

The post Choosing a Small Business Payroll Provider appeared first on Wizard Payroll Blog - The Official Blog of Wizard Payroll Service.