Pizza Today -March 2023 - 73
T
ipping models and service
charges are some of the most
discussed topics in restaurants
today among restaurateurs, employees
and customers alike. While tips and
automatic service charges may seem to
be similar, they are treated very differently
by the IRS and the Federal
Department of Labor (DOL) with
complex regulations.
How to Define and Classify Tips
and Service Charges
A tip is a discretionary payment made
by a customer independently, is calculated
on their own, and is not dictated
by restaurant policy.
In contrast, a service charge is a charge
that is mandated by the restaurant and
is a fixed amount, either as a flat fee or
a percentage of the bill.
The key difference is that a tip is
wholly owned by the employee at
all times, whereas a service charge is
wholly owned by the restaurant. This
means that an employee must receive
the entirety of the tip they are owed no
later than the next regularly scheduled
payroll. Whereas when collecting a service
fee, a restaurant can distribute it to
whomever it chooses or not distribute
it at all. Further, employers may deduct
their actual credit card processing costs
from electronic tips given by customers.
Additionally, while tips are not considered
income to the business, service
charges are income and will be taxed as
such. Service charges are also generally
subject to state sales tax.
For employees, tip income and any
service fees received are both considered
income. Employers pay federal
employer taxes on tip wages earned,
however, a credit for the amount of
tax paid on tips above any tip credits
taken is available when filing year-end
returns - ask your CPA about IRS
Form 8846.
Tip Pooling
In a traditional tipping model, individual
servers receive tips in addition to
their hourly wage, while back of house
receive no tips at all. This can result
in a disparity in pay between the two
and can bring some animosity between
those who work in the front and those
who work in the kitchen.
Recently, many pizzerias have
instituted tip pooling, in which all tips
collected are placed into a collective
pool and then divided up among staff
members. The pool can include anyone
who is in the " chain of service " , including
servers, dishwashers, bussers, cooks
and other kitchen staff. While this may
be off-putting to some career servers,
it also can result in higher employee
retention among kitchen staff.
http://ferrerofoodservice.com
Pizza Today -March 2023
Table of Contents for the Digital Edition of Pizza Today -March 2023
Pizza Today -March 2023 - CT1
Pizza Today -March 2023 - CT2
Pizza Today -March 2023 - Cover1
Pizza Today -March 2023 - Cover2
Pizza Today -March 2023 - 3
Pizza Today -March 2023 - 4
Pizza Today -March 2023 - 5
Pizza Today -March 2023 - 6
Pizza Today -March 2023 - 7
Pizza Today -March 2023 - 8
Pizza Today -March 2023 - 9
Pizza Today -March 2023 - 10
Pizza Today -March 2023 - 11
Pizza Today -March 2023 - 12
Pizza Today -March 2023 - 13
Pizza Today -March 2023 - 14
Pizza Today -March 2023 - 15
Pizza Today -March 2023 - 16
Pizza Today -March 2023 - 17
Pizza Today -March 2023 - 18
Pizza Today -March 2023 - 19
Pizza Today -March 2023 - 20
Pizza Today -March 2023 - 21
Pizza Today -March 2023 - 22
Pizza Today -March 2023 - 23
Pizza Today -March 2023 - 24
Pizza Today -March 2023 - 25
Pizza Today -March 2023 - 26
Pizza Today -March 2023 - 27
Pizza Today -March 2023 - 28
Pizza Today -March 2023 - 29
Pizza Today -March 2023 - 30
Pizza Today -March 2023 - 31
Pizza Today -March 2023 - 32
Pizza Today -March 2023 - 33
Pizza Today -March 2023 - 34
Pizza Today -March 2023 - 35
Pizza Today -March 2023 - 36
Pizza Today -March 2023 - 37
Pizza Today -March 2023 - 38
Pizza Today -March 2023 - 39
Pizza Today -March 2023 - 40
Pizza Today -March 2023 - 41
Pizza Today -March 2023 - 42
Pizza Today -March 2023 - 43
Pizza Today -March 2023 - 44
Pizza Today -March 2023 - 45
Pizza Today -March 2023 - 46
Pizza Today -March 2023 - 47
Pizza Today -March 2023 - 48
Pizza Today -March 2023 - 49
Pizza Today -March 2023 - 50
Pizza Today -March 2023 - 51
Pizza Today -March 2023 - 52
Pizza Today -March 2023 - 53
Pizza Today -March 2023 - 54
Pizza Today -March 2023 - 55
Pizza Today -March 2023 - 56
Pizza Today -March 2023 - 57
Pizza Today -March 2023 - 58
Pizza Today -March 2023 - 59
Pizza Today -March 2023 - 60
Pizza Today -March 2023 - 61
Pizza Today -March 2023 - 62
Pizza Today -March 2023 - 63
Pizza Today -March 2023 - 64
Pizza Today -March 2023 - 65
Pizza Today -March 2023 - 66
Pizza Today -March 2023 - SG1
Pizza Today -March 2023 - SG2
Pizza Today -March 2023 - SG3
Pizza Today -March 2023 - SG4
Pizza Today -March 2023 - SG5
Pizza Today -March 2023 - SG6
Pizza Today -March 2023 - SG7
Pizza Today -March 2023 - SG8
Pizza Today -March 2023 - SG9
Pizza Today -March 2023 - SG10
Pizza Today -March 2023 - SG11
Pizza Today -March 2023 - SG12
Pizza Today -March 2023 - SG13
Pizza Today -March 2023 - SG14
Pizza Today -March 2023 - SG15
Pizza Today -March 2023 - SG16
Pizza Today -March 2023 - SG17
Pizza Today -March 2023 - SG18
Pizza Today -March 2023 - SG19
Pizza Today -March 2023 - SG20
Pizza Today -March 2023 - SG21
Pizza Today -March 2023 - SG22
Pizza Today -March 2023 - SG23
Pizza Today -March 2023 - SG24
Pizza Today -March 2023 - SG25
Pizza Today -March 2023 - SG26
Pizza Today -March 2023 - SG27
Pizza Today -March 2023 - SG28
Pizza Today -March 2023 - SG29
Pizza Today -March 2023 - SG30
Pizza Today -March 2023 - SG31
Pizza Today -March 2023 - SG32
Pizza Today -March 2023 - SG33
Pizza Today -March 2023 - SG34
Pizza Today -March 2023 - SG35
Pizza Today -March 2023 - SG36
Pizza Today -March 2023 - SG37
Pizza Today -March 2023 - SG38
Pizza Today -March 2023 - SG39
Pizza Today -March 2023 - SG40
Pizza Today -March 2023 - 67
Pizza Today -March 2023 - 68
Pizza Today -March 2023 - 69
Pizza Today -March 2023 - 70
Pizza Today -March 2023 - 71
Pizza Today -March 2023 - 72
Pizza Today -March 2023 - 73
Pizza Today -March 2023 - 74
Pizza Today -March 2023 - 75
Pizza Today -March 2023 - 76
Pizza Today -March 2023 - 77
Pizza Today -March 2023 - 78
Pizza Today -March 2023 - 79
Pizza Today -March 2023 - 80
Pizza Today -March 2023 - 81
Pizza Today -March 2023 - 82
Pizza Today -March 2023 - 83
Pizza Today -March 2023 - 84
Pizza Today -March 2023 - 85
Pizza Today -March 2023 - 86
Pizza Today -March 2023 - 87
Pizza Today -March 2023 - 88
Pizza Today -March 2023 - 89
Pizza Today -March 2023 - 90
Pizza Today -March 2023 - 91
Pizza Today -March 2023 - 92
Pizza Today -March 2023 - 93
Pizza Today -March 2023 - 94
Pizza Today -March 2023 - 95
Pizza Today -March 2023 - 96
Pizza Today -March 2023 - 97
Pizza Today -March 2023 - 98
Pizza Today -March 2023 - Cover3
Pizza Today -March 2023 - Cover4
https://www.nxtbook.com/emerald/pizzatoday/202501
https://www.nxtbook.com/emerald/pizzatoday/202412
https://www.nxtbook.com/emerald/pizzatoday/202411
https://www.nxtbook.com/emerald/pizzatoday/202410
https://www.nxtbook.com/emerald/pizzatoday/202409
https://www.nxtbook.com/emerald/pizzatoday/202408
https://www.nxtbook.com/emerald/pizzatoday/202407
https://www.nxtbook.com/emerald/pizzatoday/202406
https://www.nxtbook.com/emerald/pizzatoday/202405
https://www.nxtbook.com/emerald/pizzatoday/202404
https://www.nxtbook.com/emerald/pizzatoday/202403
https://www.nxtbook.com/emerald/pizzatoday/202402
https://www.nxtbook.com/emerald/pizzatoday/202401
https://www.nxtbook.com/emerald/pizzatoday/202312
https://www.nxtbook.com/emerald/pizzatoday/202311
https://www.nxtbook.com/emerald/pizzatoday/202310
https://www.nxtbook.com/emerald/pizzatoday/202309
https://www.nxtbook.com/emerald/pizzatoday/202308
https://www.nxtbook.com/emerald/pizzatoday/202307
https://www.nxtbook.com/emerald/pizzatoday/202306
https://www.nxtbook.com/emerald/pizzatoday/202305
https://www.nxtbook.com/emerald/pizzatoday/202304
https://www.nxtbook.com/emerald/pizzatoday/202303
https://www.nxtbook.com/emerald/pizzatoday/202302
https://www.nxtbook.com/emerald/pizzatoday/202301
https://www.nxtbook.com/emerald/pizzatoday/202212
https://www.nxtbook.com/emerald/pizzatoday/202211
https://www.nxtbook.com/emerald/pizzatoday/202210
https://www.nxtbook.com/emerald/pizzatoday/202209
https://www.nxtbook.com/emerald/pizzatoday/202208
https://www.nxtbook.com/emerald/pizzatoday/202207
https://www.nxtbook.com/emerald/pizzatoday/202206
https://www.nxtbook.com/emerald/pizzatoday/202205
https://www.nxtbook.com/emerald/pizzatoday/202204
https://www.nxtbook.com/emerald/pizzatoday/202203
https://www.nxtbook.com/emerald/pizzatoday/202202
https://www.nxtbook.com/emerald/pizzatoday/202201
https://www.nxtbook.com/emerald/pizzatoday/202112
https://www.nxtbook.com/emerald/pizzatoday/202111
https://www.nxtbook.com/emerald/pizzatoday/202110
https://www.nxtbook.com/emerald/pizzatoday/202109
https://www.nxtbook.com/emerald/pizzatoday/202108
https://www.nxtbook.com/emerald/pizzatoday/202107
https://www.nxtbook.com/emerald/pizzatoday/202106
https://www.nxtbook.com/emerald/pizzatoday/202105
https://www.nxtbook.com/emerald/pizzatoday/202104
https://www.nxtbook.com/nxtbooks/pizzatoday/202103
https://www.nxtbook.com/nxtbooks/pizzatoday/202102
https://www.nxtbook.com/nxtbooks/pizzatoday/202101
https://www.nxtbook.com/nxtbooks/pizzatoday/202012
https://www.nxtbook.com/nxtbooks/pizzatoday/202011
https://www.nxtbook.com/nxtbooks/pizzatoday/202010
https://www.nxtbook.com/nxtbooks/pizzatoday/202009
https://www.nxtbook.com/nxtbooks/pizzatoday/202008
https://www.nxtbook.com/nxtbooks/pizzatoday/202007
https://www.nxtbook.com/nxtbooks/pizzatoday/202006
https://www.nxtbook.com/nxtbooks/pizzatoday/expo_2020
https://www.nxtbook.com/nxtbooks/pizzatoday/202005
https://www.nxtbook.com/nxtbooks/pizzatoday/202004
https://www.nxtbook.com/nxtbooks/pizzatoday/202003
https://www.nxtbook.com/nxtbooks/pizzatoday/202002
https://www.nxtbook.com/nxtbooks/pizzatoday/202001
https://www.nxtbook.com/nxtbooks/pizzatoday/201912
https://www.nxtbook.com/nxtbooks/pizzatoday/201911
https://www.nxtbook.com/nxtbooks/pizzatoday/201910
https://www.nxtbook.com/nxtbooks/pizzatoday/201909
https://www.nxtbook.com/nxtbooks/pizzatoday/201908
https://www.nxtbook.com/nxtbooks/pizzatoday/201907
https://www.nxtbook.com/nxtbooks/pizzatoday/201906
https://www.nxtbook.com/nxtbooks/pizzatoday/201905
https://www.nxtbook.com/nxtbooks/pizzatoday/201904
https://www.nxtbook.com/nxtbooks/pizzatoday/201903
https://www.nxtbook.com/nxtbooks/pizzatoday/201902
https://www.nxtbook.com/nxtbooks/pizzatoday/201901
https://www.nxtbook.com/nxtbooks/pizzatoday/201812
https://www.nxtbook.com/nxtbooks/pizzatoday/201811
https://www.nxtbook.com/nxtbooks/pizzatoday/201810
https://www.nxtbook.com/nxtbooks/pizzatoday/201809
https://www.nxtbook.com/nxtbooks/pizzatoday/201808
https://www.nxtbook.com/nxtbooks/pizzatoday/201807
https://www.nxtbook.com/nxtbooks/pizzatoday/201806
https://www.nxtbook.com/nxtbooks/pizzatoday/201805
https://www.nxtbook.com/nxtbooks/pizzatoday/201804
https://www.nxtbook.com/nxtbooks/pizzatoday/201803
https://www.nxtbook.com/nxtbooks/pizzatoday/201802
https://www.nxtbook.com/nxtbooks/pizzatoday/201801
https://www.nxtbook.com/nxtbooks/pizzatoday/201712
https://www.nxtbook.com/nxtbooks/pizzatoday/201711
https://www.nxtbook.com/nxtbooks/pizzatoday/201710
https://www.nxtbook.com/nxtbooks/pizzatoday/201709
https://www.nxtbook.com/nxtbooks/pizzatoday/201708
https://www.nxtbook.com/nxtbooks/pizzatoday/201707
https://www.nxtbook.com/nxtbooks/pizzatoday/201706
https://www.nxtbook.com/nxtbooks/pizzatoday/201705
https://www.nxtbook.com/nxtbooks/pizzatoday/201704
https://www.nxtbook.com/nxtbooks/pizzatoday/201703
https://www.nxtbook.com/nxtbooks/pizzatoday/201702
https://www.nxtbook.com/nxtbooks/pizzatoday/201701
https://www.nxtbook.com/nxtbooks/pizzatoday/201612
https://www.nxtbook.com/nxtbooks/pizzatoday/201611
https://www.nxtbook.com/nxtbooks/pizzatoday/201610
https://www.nxtbook.com/nxtbooks/pizzatoday/201609
https://www.nxtbook.com/nxtbooks/pizzatoday/201608
https://www.nxtbook.com/nxtbooks/pizzatoday/201607
https://www.nxtbook.com/nxtbooks/pizzatoday/201606
https://www.nxtbook.com/nxtbooks/pizzatoday/201605
https://www.nxtbook.com/nxtbooks/pizzatoday/201604
https://www.nxtbook.com/nxtbooks/pizzatoday/201603
https://www.nxtbook.com/nxtbooks/pizzatoday/201602
https://www.nxtbook.com/nxtbooks/pizzatoday/201601
https://www.nxtbook.com/nxtbooks/pizzatoday/201512
https://www.nxtbook.com/nxtbooks/pizzatoday/201511
https://www.nxtbook.com/nxtbooks/pizzatoday/201510
https://www.nxtbook.com/nxtbooks/pizzatoday/201509
https://www.nxtbook.com/nxtbooks/pizzatoday/201508
https://www.nxtbook.com/nxtbooks/pizzatoday/201507
https://www.nxtbookmedia.com