The Payroll Factory, Inc. March 2023 Newsletter
Welcome to The Payroll Factory March 2023 Newsletter. As tax season rolls on heading toward the
April 18th, 2023 deadline, we look at an IRS proposal currently in
the public comments section regarding the service industry and tips.
On February 6th, 2023 the IRS issued a notice
regarding a proposed revenue procedure called the Service Industry Tip
Compliance Agreement program (SITCA).
This program is designed to take advancements in point of sale, time and
attendance systems and electronic payment methods to improve tip compliance.
1. Employer compliance based on annual tip revenue and charge tip data from the employer’s point of sale system.
2.
Those employers participating submitting an
annual report after the close of the calendar year
3. Protection from liability under the rules that define tips as part of an employee’s pay for calendar years in which they remain compliant with program requirements.
4.
Employer flexibility to implement employee tip
reporting policies best suited for their employees and their business model in
accordance to the part of the tax law requiring employees to report tips to the
employees.
The public comments section ends on this proposal as of May
7th, 2023. We will monitor
this proposal as we inch closer to May.
Please feel free to circulate this newsletter to your staff and clients.
As always “whatever it takes,” I look forward to working with you, your associates and above all your clients. Have a successful tax season.
Sincerely,
Steve Sabel
Senior Account Relationship Manager
The Payroll Factory
18 East Lancaster Avenue
Malvern, Pennsylvania 19355
267-907-4179 cell
steve@prfusa.com
www.thepayrollfactory.com
