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Restaurants can use tipped wages, in most states, to reduce labor cost and reduce taxes. The result can be savings of tens of thousands of dollars per year or more.

However, restaurant owners and managers must understand the regulations and rules governing tips. Not being in compliance with tip laws is a violation of labor laws and can lead to legal action, labor investigations, audits and fines.

Negative rulings and findings can result in legal monetary settlements, fines and taxes. Our Ultimate Tip Credit Guide, outlines the benefits of the Tip Credit and how it can greatly benefit restaurants.