Відео

Better still, why leave out the regressive taxation called TARIFF on everything. 20% taxes?

False.

Wow you are so full of crap you keep on listening to Trump's BS a delusional swamp rat Trump is not your savior moron he's just trying to stay out of prison

That’s a solid setup! Paying overtime and double time on top of a high base salary sounds like a great way to keep supervisors motivated. Just make sure it’s all in line with labor laws since overtime eligibility for salaried employees can vary. Always good to stay on top of compliance!

Great question! Form WH-347 is a certified payroll report used by the U.S. Department of Labor for government-funded projects. If you're being asked to complete it, it likely means your business is working as a contractor or subcontractor on a federal or state-funded project under the Davis-Bacon Act, which ensures workers are paid prevailing wages. Even if you’re a sole proprietor, anyone working on that project must report payroll information for compliance purposes. The form breaks down hours worked, pay rates, and withholdings to make sure workers are being compensated fairly. If you don't have employees, just list yourself or any family members involved with the correct hours and rates for the job. It's a bit of a hassle, but it's necessary to comply with the rules for government projects. If the project manager has specific instructions for your case, it's a good idea to check with them too! Hope this helps!

You're absolutely right-'tipping out' is still common practice in many restaurants. It ensures that everyone who contributes to the customer experience, like bartenders, bussers, and hosts, gets a share of the tips. What’s important to keep in mind, though, is that the IRS requires servers to report all tips they receive, including the amount they tip out. So, if you made $200 in tips, you would need to report the full $200, even though you may have only kept $125 after tipping out. The reason for this is that those other employees-like the busser or bartender-are also expected to report the tips they receive. It’s all part of ensuring taxes are accurately calculated. It can feel frustrating, but reporting correctly helps avoid potential tax issues down the road!

It’s definitely a heated issue and one a lot of people are divided on. The big question of "who’s paying for it?" is something we’re all asking. Our goal is to break down these policies and help everyone understand how they might affect us, especially small business owners. Appreciate you chiming in!

You don't pay taxes on gift income, tips are a gift.

@@AverageJoe-12If tips are gifts and not seen as actual income, then why are waitresses & bartenders allowed to be paid $2 an hour? Do you see the flaw in your logic?

There's definitely some confusion here! Tips are actually considered taxable income by the IRS, not gifts. That’s why servers need to report them, and it also explains why their hourly pay can be lower-tips are expected to make up the difference. It’s a tricky system, but that's how the laws are currently set up!

Great point! Balancing hourly wages and tips is definitely tricky in some states. Changing the laws could help servers earn more consistently. What kind of changes do you think would work best?

@@CSI-Accounting-and-Payroll employee owned restaurants and eots I think could change the lives of a lot of people. But most ceos are too greedy to do it

Cash tips definitely have their charm and simplicity, but with how everything’s moving toward digital, it's tough to say if they'll make a big comeback. People love convenience, and card payments are hard to beat in that sense. Still, there’s something nice about a good old-fashioned cash tip!

Yeah, it might seem frustrating, but tips are considered income, just like wages. The idea is that if it's money earned from work, it falls under taxable income. It’s not about lobbying-it’s just how tax laws are set up. Everyone's gotta pay their share, even on tips.

Legally, all tips-including cash-are taxable and are supposed to be reported, but it's understandable why some prefer cash to avoid taxes. Especially for those relying on tips, but technically, cash tips still need to be reported.

We'd definitely run into some serious enforcement issues...😅

You're right, Comer and Cruz have both introduced legislation in the House and Senate. It’ll be interesting to see where it goes. What do you think about it?

I get where you're coming from, but actually, tips are considered taxable income by the IRS, no matter the industry. It’s a common misconception, but anyone earning tips-whether a hairdresser, server, or dog groomer-has to report them as income. It’s definitely a tricky topic!

I get where you're coming from-Republicans like Reagan and Trump are well-known for tax cuts. Democrats tend to focus more on adjusting who pays, like cutting taxes for the middle class while raising them for higher earners. It all depends on their priorities. What kind of tax changes do you think would work best, no matter the party?

@@CSI-Accounting-and-Payroll The Dems like to say they are only for taxing the rich and Trumps cut were for the rich. This like everything else they say is B.S. Trumps cuts lowered the tax tables while increasing the standard deduction. Federal income tax was originated in the 20s or 30s and it was 2% All "temporary" taxes are still in effect. Get rid os 90% of the useless and Unconstitutional Federal Govt. I would start with the ATF and IRS that the Dems just doubled.

True! Before electronic payments, a lot of tips went unreported, which did make tipped work more appealing. But with most payments being tracked now, removing taxes on tips could raise fairness issues for non-tipped workers who pay taxes on their full income. Do you think going back to that old system would still work today with everything being more digital?

@@CSI-Accounting-and-Payroll It raises a broader question of what income level we're targeting for tax compliance and where those 80 plus billion dollars for the IRS are actually going. For every one "big fish" the IRS bags, they're probably going to snare 10k little fish. It wasn't "fair" in 1990, but the numbers in question were small enough not to matter to the federal government but quite huge for the Waffle House worker going home with 80 bucks instead of 96 bucks at the end of a shift. Technically, it was illegal then. The difference is that it's recorded now.

You make a valid point about who really feels the impact. The big question is how we strike a balance between enforcing tax laws and not overburdening people who are already stretched thin. Maybe the solution is smarter tax policies rather than just more enforcement?

@@CSI-Accounting-and-Payroll That in turn begs the larger question. Are we after "equity" or "revenue"? For most people in the standard deduction realm, the tax code is already simple. The pursuit of "smarter" tax policies is arguably the greatest contributor to the Byzantine system we have as income rises. Complexity increases the cost of compliance. If some person or business is going to have to spend that much on compliance, that same spending is going to focus on avoidance. Of course the notion of simplifying spending never gets introduced in these conversations. Instead, we have renters subsidizing homeowner's window purchase and bus riders subsidizing someone else's EV purchase or a landscaper being saddled with an art professor's student loans.

@@wisenber You raise an interesting point about the tension between "equity" and "revenue" in tax policy. Simplifying the tax code for most people, especially those in the standard deduction range, might make sense since it keeps compliance costs low. But as income rises, the drive for "smarter" tax policies often leads to increased complexity, which can indeed push people and businesses to focus on avoidance rather than compliance. The real challenge is finding a balance between fairness and simplicity. Complex tax incentives and subsidies, like the ones you mentioned (homeowner subsidies, EV credits, or student loan forgiveness), often aim at equity but can feel unfair to those who don’t directly benefit from them, like renters, bus riders, or landscapers. This sense of imbalance can fuel frustration and reinforce the perception that the system is rigged against certain groups. The key question becomes: How do we design a system that promotes fairness without creating unnecessary complexity or pushing people toward avoidance? Simplifying spending and rethinking which subsidies are truly equitable could be a start, but those conversations often take a backseat to more politically charged issues.

I get where you're coming from, but it’s important to remember that not all tipped workers are in the same boat. While some may make a decent amount through tips, many rely on those tips just to hit minimum wage. That variability is why there’s debate about making wages more stable for tipped workers. As for workers preferring tips, it’s often because it can lead to higher earnings in certain cases, but it’s not a guarantee for everyone. It’s definitely a complex issue with pros and cons on both sides.

Interesting! Cutting income tax sounds simple, but it funds important services like roads, schools, and healthcare. And loopholes could still pop up in other areas. Tax policy is never as straightforward as it seems!

Thanks, we're also skeptical this will get passed by either candidate.

You're welcome! We're glad to help!

That's awesome! We're a monthly accounting firm that exclusively serves businesses. Do you have a particular question?

It’s a tough balance-higher taxes could mean less investment and innovation, but some argue it helps fund programs that benefit everyone. It’s definitely a complex issue. Thanks for sharing your take!

Yup

Yeah, we get the concern-tax policies do have a way of creeping down over time, so we totally see why people are skeptical. Right now, it’s targeting the ultra-wealthy, but it’s hard not to wonder if that could change. Appreciate you pointing that out-definitely something to keep an eye on!