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Are Tips A Payroll Expense? [Solved]
Tips are considered employee income, not wages and are not subject to withholding. Employees are required to report tips to their employer, and both are required to pay taxes on them. However, the IRS does not consider tips restaurant revenue, and restaurants are not allowed to claim them as such.
Payroll Liabilities | Payroll Expense | FICA deductions | Financial Accounting Course CPA exam
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