The Biden administration is looking to crack down on waiters’ tips by introducing a new set of regulations. The proposal, which is being put forward by the Internal Revenue Service (IRS), would require restaurants to report employees’ tips and other gratuities to the federal government.
This effort, which is part of the new administration’s larger plan to combat income inequality, would require restaurants to report their waitstaff’s tips on a monthly basis. These reports would then be used by the IRS to ensure that the waitstaff are being properly compensated and that the restaurant owners are not attempting to use these gratuities to offset the cost of other payroll expenses.
The new regulations would also require restaurants to track and report cash tips more closely. There have been reports that some restaurants have been using cash tips to pay other employees, such as kitchen staff, which is not allowed under current law.
The Biden administration hopes that these new regulations will help to ensure that waitstaff are being properly compensated for their work. They also believe that the new regulations will help to level the playing field for smaller restaurants, which often lack the resources to track and report such information.
However, some in the restaurant industry are concerned that the new regulations are too onerous and will lead to larger administrative costs and burdens for restaurant owners. They worry that the new regulations could lead to higher prices for consumers and put smaller restaurants at a disadvantage.
The Biden administration is still working to finalize the proposed regulations and it remains to be seen how they will be implemented. Nevertheless, it appears that the administration is serious about cracking down on waiters’ tips and ensuring that they are properly compensated and reported to the IRS.