turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

ashwins
New Member

I am one of the partners of a LLC that owns and operates a restaurant

Myself and one other partner is on our restaurants payroll.

We do the front end operations - manning the cash counter, talking to customers etc.

Ours is a fast food restaurant and so there are no waiters - just 1 chef and 1 cleaner.

 

We are thinking of retaining 50% of the tips at the LLC. (the other 50% would be distributed between the chef and the cleaner) Are we allowed to do this?

If not, can we include the tips in our payroll as part of our paychecks?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

I am one of the partners of a LLC that owns and operates a restaurant

The 50% retained is going to flow through to you and your partner at the end of the year anyway. Putting it on your payroll as a guaranteed payment would work. 

ashwins
New Member

I am one of the partners of a LLC that owns and operates a restaurant

Thanks for the response.

I was referring to :

https://www.eater.com/2018/3/22/17151172/tipping-laws-trump-budget-bill-pooling-minimum-wages

 

where it's mentioned that employers can't retain tips.

I guess since the employers also work at the restaurant, this doesn't apply.

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies