The Deep End of the (Tip) Pool

July 26, 2017

By Paul Garcia, President, The Association of Bar & Lounge Establishments
(originally published at

What are the odds of getting caught breaking the law and what’s at stake?

In the U.S. about 11% of restaurants are audited each year by the IRS. The last time you got scared it was about how service charges are handled. This time you should be VERY scared if you have a tip pool. If you can’t afford to pay three times the payroll you have been paying, don’t be complacent, keep reading. If you disbelieve restaurant IRS audits are at 11% per year, understand