Restaurants and Taxes

Many restaurants are required by law to comply$2.13 an hour in direct wages and make sure that
with the Fair Labor Standards Act (FLSA). This isthe amount of tips received is enough to meet
mainly for the employee's protection, but itthe remainder of the minimum wage." Uniforms,
provides clear guidelines to an employer for whatcustomers who walk out without paying, or other
is acceptable and how to pay and withhold taxesbusiness expenses are not allowed to be
from their staff's paychecks. Here are some ofdeducted if it reduces an individual's paycheck
the provisions of the FLSA and who is subject tobelow minimum wage. The FLSA states that
them.employers cannot take their staff's tips, except if
If your restaurant has sales that total more thantip allocation is allowed.
five hundred thousand dollars a year you areSince many in the food service industry are
subject to FLSA. Another covered category isyounger there are more requirements about
individuals who are engaged in "interstateminimum age and how many hours minors can
commerce". This is a rather broad class thatwork. For example, although fourteen and fifteen
includes employees that handle credit cardyear olds are permitted to work, they are not
transactions, for example. Making sure youallowed more than three hours on a school day or
understand whether or not your restaurant musteight hours on a non-school day. Even in the
comply with the FLSA is incredibly important forsummertime minors are not allowed to work
the legal status of your establishment so if youbefore seven in the morning or past nine o'clock
have any doubts, please consult your accountantat night. The minimum wage for minors less than
or lawyer.twenty years old is four dollars and twenty-five
As of 2009, the minimum wage for workerscents. I began working in the food service
under FLSA is seven dollars and twenty-fiveindustry when I was fifteen and clearly remember
cents an hour. According to the Internal Revenuebeing frustrated by the limitations I faced.
Service, "Tips may be considered as part ofHowever, the regulations are in place to safeguard
wages, but the employer must pay not less thanrather than stifle.