🍕 What’s Cooking with the New Tax Code?

2025 has brought new challenges for restaurants when it comes to payroll. If your team handles tips, here’s what you need to know:

• Greater scrutiny of tip pooling and distribution
• Expanded tip credit reporting requirements
• New W-2 and 941 formatting rules
• Hefty penalties for errors—even accidental ones

🍟 Why This Matters for Restaurants

The cost of getting payroll wrong in 2025 is higher than ever:

• Increased paperwork and compliance pressure
• Risk of audits and wage disputes
• Incorrect tip credit use could lead to lawsuits

🥗 What Smart Restaurants Are Doing Right Now

Smart owners aren’t waiting for a letter from the IRS. They’re acting now:

• Auditing their tip credit reporting
• Reviewing timekeeping systems for accuracy
• Partnering with payroll services that know restaurants
• Training staff on daily tip declaration best practices

🧂 Spicing Things Up: Tips for Staying Ahead

• Play “Find the Tip Credit” with past payroll reports
• Double-check how overtime for tipped employees is calculated
• Ensure POS and payroll systems communicate accurately
• Ask a payroll pro for a quick compliance review

🎉 The Bottom Line

Running a restaurant is hard enough—don’t let payroll complications tip the balance. These new 2025 regulations are a big deal, but they don’t have to be overwhelming. A little preparation goes a long way.

Focus on your food—we’ll help you stay compliant.