Grubhub and Uber Eats both are changing their procedures regarding sales tax reporting and paying. Previously, Grubhub and Uber Eats made the restaurant responsible for paying sales tax on its sales.
Interchange Fess AntiTrust Litigation
There has been a class-action suit filed against Visa, Mastercard and Defendant Banks for over-charging on their fees. A new settlement has been reached and all eligible merchants including restaurants and bars could be eligible for a share of the settlement. The settlement is between $5.5-6.2 billion.
When a cardholder makes a purchase of food or beverage at your restaurant or bar using a credit or debit card, there is an interchange fee charged to the merchant by the bank. The fee is usually 1-2% of the purchase price including tips.
If you took Mastercard or Visa during the years January 1, 2004 and January 25, 2019, you would be a potential claimant.
This is an important question. How you are organized for tax purposes can make a big difference in how much you pay.
The Affordable Care Act (ACA) is still with us and a big administrative pain for large restaurants and restaurant chains.
It appears that the IRS is stepping up enforcement actions.
The WOTC (Work Opportunity Tax Credit) can be used to reduce your taxes.
It is a Federal credit calculated off your payroll and is based on you hiring certain hard to employ target groups.
If you hire a person who belongs to one of the groups, you can obtain the credit
YOU DIDN’T OFFER HEALTH INSURANCE? HERE IS YOUR $100,000 PENALTY
REMINDER UPDATE ON WHAT YOU NEED TO DO
The IRS has not forgotten about Obamacare (ACA).
The IRS is sending letters to restaurants and proposing penalties in the tens of thousands of dollars unless you can prove that you complied with the rules.
Contractor versus employee status is a grey area with plenty of definitions and interpretations. In some industries, it is common practice to employ contractors. Contractors give employers the flexibility to get certain jobs done without hiring a full-time employee.