How to Calculate California Restaurant Tax
Understanding California Restaurant Tax In California, restaurants are responsible for paying sales tax to the state on taxable items. What makes a transaction taxable? The answer gets a little complicated for restaurants. The key distinctions are whether the food is hot or cold, and whether it is intended to be consumed on the premises. Here’s […]
Complete Guide on Restaurant Taxes for Managers/Owners
Importance of Understanding Restaurant Taxes as a Business Owner The restaurant industry has specific conditions that complicate its taxation such as tipped employees and a bevy of state and local laws that regulate sales and payroll taxes. As a restaurant owner, it’s critical that you, and not just your accountant, understand the taxes on restaurants. […]
What Restaurant Owners/Managers Should Know About Tips
Restaurant Tip Withholding Requirements, Importance of Proper Reporting & More Restaurant tips have their share of mystery surrounding them – but they don’t have to! Since tips are an extra type of payment to servers, bartenders, and other restaurant staff, they’re often regarded as under-the-table income. But that’s the first mistake usually made when calculating […]
How to Record Tips in Accounting
When restaurant staff receives tips, both employee and employer incur legal obligations to the IRS to correctly record the tip amounts, comply with reporting requirements, and pay income and payroll taxes. For the restaurant operator, it’s critical to get these details correct from the start to avoid unnecessary penalties. This article will cover how to […]
Restaurant Tax Credits Under The American Rescue Plan Act
Podcast Video The American Rescue Plan Act of 2021 (ARPA) is an Emergency Legislative Package to Fund Vaccinations, Provide Immediate, Direct Relief to Families Bearing the Brunt of the COVID-19 Crisis, and Support Struggling Communities. ARPA was signed into law by President Joe Biden on March 11, 2021, and it builds upon the directives of […]
Retroactive Employee Retention Tax Credit
UPDATES TO THE RETROACTIVE EMPLOYEE RETENTION TAX CREDIT UPDATE (1/27/21): The IRS has released new guidance regarding claiming the retroactive ERTC. Unfortunately, the new guidance requires more granular data. On January 22, 2020 the IRS published guidance that indicated employers claiming the ERTC on Q4 941 for Q1, Q2, Q3, and Q4 can only do so […]
How Period End Reviews Can Set Your Restaurant Up For Financial Success
A consistent Period End Review process is an essential component to a restaurant’s financial success. Period End Reviews allow operators to review metrics and identify areas of opportunity with audits and benchmarks. Operators who have a true understanding of their fiscal health enable themselves the ability to make proactive business decisions, improve their restaurant’s operational […]