It isn’t just semantics. A 2012 IRS ruling that (after a 1-year delay) became effective on January 1, 2014, requires employers to add fixed service charges (e.g., 18% for a party of 6 or more) to payroll rather than treat them as tips. This may increase payroll costs (employees have always been required to report tips but haven’t always done so, at least fully).
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