I frequently have customers include a tip for the crews in their check/credit card, rather than giving cash. It's been policy as of late to tax the employees on these tips and have payroll company include them on their weekly checks. Good policy or not? How do you handle tips? Part of me think I'm being cheap, but part of me realizes I'm getting taxed too!
Barry Landis said
Oct 20, 2013
All tips we receive are always cash. I guess if it was by check or credit card, and all the time, I would probably tax the employees also. If it was only once in awhile through check or credit card, I would take the hit.
SprayWash said
Oct 20, 2013
We are over $1000 in tips collected so far this year on checks and credit cards. The tax on that wouldn't hurt me, but trying to find every way tO reduce tax liability.
I frequently have customers include a tip for the crews in their check/credit card, rather than giving cash. It's been policy as of late to tax the employees on these tips and have payroll company include them on their weekly checks. Good policy or not? How do you handle tips? Part of me think I'm being cheap, but part of me realizes I'm getting taxed too!