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Taxes on tips for Supervisory personnel
Posted by: Chris Vorndran, April 20, 2014 07:58PM
We are officers in a not for profit yacht club.

I would like to know the proper way to handle tips for a supervisory person who supervisors our wait staff. We were told by our CPA that the supervisor should receive tips only when she works alone. She is not to receive a portion of the tips when she is supervising her wait staff. The tips for our member events are 17.5% and 20% for non-member events. Any direction would be appreciated.

Re: Taxes on tips for Supervisory personnel
Posted by: triad, April 21, 2014 11:20AM
Talk to your CPA again. If there is a fixed gratuity on events, this is no longer a tip, but wages.

Seriously--the IRS changed the rules.

Re: Taxes on tips for Supervisory personnel
Posted by: Drewremedy, April 21, 2014 03:25PM
From a motivation standpoint many a front line manager could use the sweetener...behavior may not be the CPA strong card either?

Re: Taxes on tips for Supervisory personnel
Posted by: Drewremedy, April 21, 2014 03:25PM
From a motivation standpoint many a front line manager could use the sweetener...behavior may not be the CPA strong card either?

Re: Taxes on tips for Supervisory personnel
Posted by: jainen, April 21, 2014 03:37PM
Chris Vorndran Wrote:
>>We were told by our CPA that the supervisor should receive tips only when she works alone.<<

Compensation is a matter of negotiation between the employee and your Board of Directors (or delegated officer). Your accountant can certainly offer advice, but you should ask what the reasoning is. I don't know any tax or accounting standard for sharing a fixed gratuity. In many situations a supervisor's duties are almost identical to other employees.




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