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New rules for tipped restaurant workers

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Posted: Thursday, January 9, 2014 11:15 am | Updated: 11:21 am, Thu Jan 9, 2014.

I am interested in hearing from restaurant servers and managers about the new IRS rules regarding gratuities. It has been common for most Santa Fe restaurants to automatically add 18 percent on checks for larger parties - usually 8 or more patrons.

Now that 18 percent is collected by the restaurant. Servers should still receive all the money, but it will be paid out with salary checks — and taxed accordingly. That will cut into the immediate take-home pay of many servers and probably result in higher tax collections to the federal government as the possibility of short changing the gratuity amount for tax purposes is eliminated.

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Welcome to the discussion.

1 comment:

  • Pierce Knolls posted at 11:58 am on Thu, Jan 9, 2014.

    Mister Pierce Posts: 1688

    This should make the Occupy folks happy; the IRS is sticking it to tipped servers, those notorious ne'er do wells who haven't been paying their fair share.

     

Behind the beat

Bruce Krasnow is a native of Chicago and worked at publications in Illinois, Florida and Washington State before joining The New Mexican in 1996. He is a graduate of Northern Illinois University and the Columbia University School of Journalism.

He can be reached at brucek@sfnewmexican.com or 505-986-3034. You can also follow him on Twitter at #brucekraz

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