June 4, 2025 #1 Local News, Information and Event Source for the Century City/Westwood areas.

Board of Equalization adopts regulation regarding nontaxable tips

s
The regulation is to clarify the way in which a restaurant reports mandatory and/or optional tips. (Thinkstock)

At its Culver City Meeting on August 5, 2014, the Board of Equalization adopted a regulation to clarify the way a restaurant reports mandatory and optional tips. The regulation establishes a presumption that restaurants are correctly reporting the taxable mandatory service charges to the BOE when their records are kept consistent with the Internal Revenue Service (IRS) guidelines.

“By the BOE presuming the reporting to BOE is correct when it is consistent with the method of reporting tips and tip-wages to the IRS, that will make it easier for restaurant operators to report their taxable sales to the BOE and to later verify this information if they are audited,” said Chairman Jerome E. Horton.

When a restaurant applies automatic gratuities (tips) to their customers’ checks, such as for large parties, the tip is considered a mandatory part of the sale of the meal and therefore taxable. Conversely, tips that are not mandatory are not subject to sales tax. When the regulation becomes effective on January 1, 2015, the BOE will presume that a restaurant is properly reporting taxable service charges so long as the books and records are consistent with the way the restaurant reports tip and non-tip wages to the IRS.

Related Posts

(Video) Some of the Damage Caused By Vandals at Malibu High School Overnight

June 4, 2025

June 4, 2025

40 to 50 people, who are suspected to be students or recent alumni, used eggs, flour, and markers to deface...

Biggest Night of the Year: Don’t Miss GMCLA’s ‘Dancing Queens’

June 3, 2025

June 3, 2025

Culminating its 46th season, the Gay Men’s Chorus of Los Angeles will grace the crowd with Dancing Queens, celebrating iconic...

Driver Arrested for Suspected DUI After Rollover Crash in West Los Angeles

June 3, 2025

June 3, 2025

One Person Hospitalized, Light Pole Smashed After Late-Night Collision One driver was arrested on suspicion of DUI, and another person...

Pluto TV and Oscar-Winning Director Sean Baker Team Up to Host Free Weekend Screenings

June 3, 2025

June 3, 2025

Popcorn Challenge Interactive Event Set for Westfield Century City Mall  The historic Gardena Cinema, one of the last single-screen, family-operated...

Former ‘Real Housewives’ Husband Sentenced to Over 7 Years for $15 Million Client Fraud 

June 3, 2025

June 3, 2025

Federal Judge Rejects Plea for Medical Placement, Orders Restitution and Prison Time Disgraced former attorney Tom Girardi was sentenced Tuesday...

Malibu High Targeted in Overnight Vandalism Spree; Investigation Underway

June 3, 2025

June 3, 2025

Destruction on Campus Prompts Sheriff’s Probe; Students May Face Charges Vandals caused extensive damage to the school property of Malibu...

A Season of Gratitude: After One Year in Business, Urban Jungle Continues Making its Mark

June 2, 2025

June 2, 2025

Over the last year, Urban Jungle, an indoor and tropical plants nursery, has continued its mission to cultivate a place...

The soul’s greatest hits

June 2, 2025

June 2, 2025

From ‘Ave Maria’ to ‘Hallelujah Chorus’ and ‘Ode to Joy,” a Santa Monica concert raising funds to help fire victims...

LAPD Increases Security at Jewish Sites Following Colorado Flamethrower Attack

June 2, 2025

June 2, 2025

Officials Ramp Up Patrols and Plan Emergency Response as Shavuot Concludes. Security outside Jewish institutions in Los Angeles has been...

The Peabody Awards Celebrate Bold Storytelling and Social Impact at Beverly Hills Gala

June 2, 2025

June 2, 2025

Honorees Including Baby Reindeer, Shōgun, and The Only Doctor at In-Person Ceremony The Peabody Awards held their awards ceremony Sunday...

Chamber Music Palisades Presents an Afternoon of Beethoven, Brahms, Debussy, and More

June 2, 2025

June 2, 2025

Brentwood Hosts Free Classical Concert with LA Philharmonic Greats Chamber Music Palisades will present a free community concert on Saturday,...

Massive Fire Engulfs Auto Shop, Shuts Down 10 Freeway Eastbound Lanes

June 2, 2025

June 2, 2025

Explosions, Thick Smoke, and Downed Power Lines Disrupt Traffic in Palms A fast-moving fire broke out Sunday behind a commercial...

Culver City to Frame Iconic Tree with Landmark Sculpture by Charles Gaines

June 2, 2025

June 2, 2025

Acclaimed Conceptual Artist’s Public Artwork Enters Final Phase Culver City is moving forward with the final phase of an ambitious...

Alpine Floor & Home: A Legacy of Quality Since 1968

June 2, 2025

June 2, 2025

Founded in 1968 with a single location, Alpine Floor & Home began as a humble family business with a clear...

Actress Cameron Diaz Slashes Price on Beverly Crest Estate to $16.5 Million

June 2, 2025

June 2, 2025

Modern Farmhouse in Beverly Crest Returns to Market with Lower Price Tag Cameron Diaz has reduced the asking price of...