new service charge law?

[Jkay]

http://kingofnightclubs.com/7-things...t-a-nightclub/

point 3.

I don't quite understand what he means by the new law that apparently kicked in 1/1/14. Anyone explain?

[chrisbru]

http://kingofnightclubs.com/7-things...t-a-nightclub/

point 3.

I don't quite understand what he means by the new law that apparently kicked in 1/1/14. Anyone explain?

It only affects things on the backend, for the employer. You won't see any difference up front. Basically, it incentivizes clubs to stop charging automatic gratuity and allow the customer to decide what to tip (like XS does, for example). Otherwise, it has to be a "service charge" rather than an "auto-gratuity", and those are treated differently in factoring into employees' wages and payroll stuff.

Here's an article that explains it if you care, but basically it doesn't affect consumers, just employers and (to a lesser extent) employees.
http://www.foleyhoag.com/publication...fect-january-1

[Lukas]

Chrisbru

Does this mean we will see clubs will have remove auto grat from their bills?

It only affects things on the backend, for the employer. You won't see any difference up front. Basically, it incentivizes clubs to stop charging automatic gratuity and allow the customer to decide what to tip (like XS does, for example). Otherwise, it has to be a "service charge" rather than an "auto-gratuity", and those are treated differently in factoring into employees' wages and payroll stuff.

Here's an article that explains it if you care, but basically it doesn't affect consumers, just employers and (to a lesser extent) employees.
http://www.foleyhoag.com/publication...fect-january-1

[ccc]

Not yet, more likely they will just change the name. This was targeted mostly at restaurants anyway. The impact on table service was likely never even considered when the IRS changed the rules.

[chrisbru]

Not yet, more likely they will just change the name. This was targeted mostly at restaurants anyway. The impact on table service was likely never even considered when the IRS changed the rules.

Right.

[ccc]

lol, I've heard about the built in tips in Miami.