No Tax on Large Party Tips: New Rules for Restaurants
This act clarifies that tips automatically added to a bill or suggested by a business are considered voluntary. This means employees receiving such tips may benefit from tax deductions, potentially impacting their income and tax obligations.
Key points
Tips automatically added to a customer's bill will be treated as voluntarily paid.
Suggested tips prompted by a business will also be considered voluntary.
This change may affect how employees and employers handle tip taxation.
Introduced
Citizen Poll