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Tag: tip credit

tip pooling

Maine updates tip pooling laws

Attention employers with tipped employees! Maine legislatures have signed a new law, making a change to how tip pooling works.  Let’s take a look at the new tip pooling laws in Maine. What is tip pooling? Businesses with employees who customarily receive tips may decide to “pool” all tips together

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FICA Tip Credit

What is the FICA Tip Credit?

Understanding payroll taxes can be difficult as there are multiple parts to these taxes. Businesses with tipped workers have it even harder as their employee’s compensation is made up of hourly wages, regular tips, service charges, and more. These types of businesses are allowed to take a tax credit, called

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What are the Federal Tip Credit Changes?

A few adjustments have been made to the federal tip credit, part of the Fair Labor Standards Act, under a new rule passed by the Department of Labor that takes effect December 28th. What is the federal tip credit? The federal tip credit allows employers that have tipped workers to pay

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