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Jan102014

Watchdog.org - IRS rule could cut into restaurant workers’ tips

New IRS rule could cut into restaurant workers’ tips

Even as President Obama and progressive activists are trying to sell the nation on hiking the national minimum wage to help restaurant workers and other low-wage employees, the Internal Revenue Service is seemingly determined to make life harder for those same workers.

A change in tax policy implemented Jan. 1 will prevent restaurant workers from collecting automatic gratuities — the added 18 percent fee many restaurants charge to groups of eight or more — as part of their tips. Instead, that added fee will be included in their payroll, meaning workers have to wait up to two weeks to get that extra cash and must pay additional taxes on it.

Read more about the new IRS rule 

Fraud still a problem in extended unemployment benefit programs

As Congress debates extending long-term unemployment benefits for some 1.3 million Americans, lost in the heated rhetoric are some very important numbers for taxpayers.

The state and federal unemployment insurance system has helped a lot of people in need, but it’s also allowed some ineligible recipients to fraudulently help themselves to the pocketbooks of businesses and taxpayers. States recorded some $7.7 billion dollars in improper unemployment insurance payments in 2013, according to the U.S. Department of Labor.

Find out the top states with the most fraud 

 

In Case You Missed it

Michigan among leaders in job growth

AFSCME reports using thousands in taxpayer money to organize unions

TN governor won’t disclose whether taxpayer money will keep UAW away

Cartoon of the Week

I didn't say "How 'bout a Tax Tip?" I said, How 'bout a Tip TAX...!!"

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