by Ted
The IRS Chief Council has ruled in a case involving the FICA Tip Credit involving tips undeclared in a previous tax year. From the ruling: “In a prior tax year an employee receives cash tips which constitute wages but the employee fails to report the tip amounts to his or her employer in the year […]
Filed under: Federal News, Payroll News
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by Ted
Five states increased their minimum wages effective July 1, 2008. In Illinois, the state minimum wage increased from $7.50 to $7.75 per hour. Credit for tips may not exceed 40% of the applicable minimum wage. Michigan’s minimum wage also increased from $7.15 to $7.40. Tipped employees make $2.65 making the state tip credit $4.75. The […]
Filed under: Payroll News, State News
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