#Gratuity

[cherryblossomshadow]

No (Federal) Taxes on Tips

No Tax on Tips by the Daily Show ft Desi Lydic

Desi Lydic: It's weird he's even talking about sending teachers to the gulag, because Trump has more popular policies, like his proposal to end taxes on tips, which is so popular that Kamala Harris now says that SHE supports it. And Trump is not happy about that … Look, to be fair, Kamala did copy Trump's no tax on tips idea,

which would make it the first time in history that a woman got credit for repeating a man's idea.

We did it, girls. And she didn't stop there. Kamala also completely ripped off his idea to lead in the polls by 3 points against a rapidly deteriorating candidate. That was his thing. That was his thing.

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Harris v. Trump on Taxing Tips by Robert Reich

Kamala Harris, Saturday, in Las Vegas: Raise the minimum wage. And eliminate taxes on tips for service and hospitality workers Donald Trump, at Mar-A-Lago: We’re gonna have no tax on tips. Very simple

Ali Velshi from MSNBC: The Trump plan sounds like it's for regular people, but it could easily be a backdoor way to give big tax breaks to rich people who can reclassify their commission income as tips

Robert Reich: You betcha. In fact, we are going to see all kinds of things reclassified as tips. You can bet that private equity managers and hedge fund managers, who are now in the seven or eight digit classification, suddenly a lot of what they earn will become tips. At least under Donald Trump's proposal, because it's not — there are no guardrails. There's no limits to who can declare what as tips Ali Velshi from MSNBC: The key difference in Kamala Harris’ no taxes on tips proposal is that it's only for service and hospitality workers RR: I think it could be helpful if combined, as Kamala Harris wants to do, with a minimum wage hike. And also limit it so that Wall Street commission professionals can't sort of reclassify their income as tips. By the way, let me just say one further thing about this, and that is that the Labor Department under Donald Trump DID change the regulations to allow employers to take the tipped incomes of their employees and use it for their profits.. I mean, it's quite rich that Donald Trump has jumped on this one

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Americans For Tax Fairness (@/4TaxFairness)

"No taxes on tips" isn't the win you think it is. Most tipped workers wouldn't get much of a tax cut at all. But you know who would? Corporations that employ tipped workers and the wealthy who can relabel their income as "tips" at will. Pass.

(Title of the above image is Table 1: The No Tax on Tips Act would provide no or paltry tax cuts to many tipped employees – far less than restoring American Rescue Plan tax credits)

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Robert Reich (@/RBReich) quote-retweeted with:

Trump keeps touting plans to not tax tips. But estimates show that a majority of tipped workers wouldn't benefit.  Who would benefit? Big earners like hedge fund managers who could convert their fees into "tips" and get big tax breaks. It's another Trump tax scam.

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Why Trump's and Harris' proposals to end federal taxes on tips would be difficult to enact

By Dee-Ann Durbin | The Associated Press

Quotes:

Former President Donald Trump and Vice President Kamala Harris agree on one thing, at least: Both say they want to eliminate federal taxes on workers’ tips.

But experts say there’s a reason Congress hasn’t made such a change already. It would be complicated, not to mention enormously costly to the federal government, to enact. It would encourage many higher-paid workers to restructure their compensation to classify some of it as “tips” and thereby avoid taxes. And, in the end, it likely wouldn’t help millions of low-income workers.

“There’s no way that it wouldn’t be a mess,” said James Hines Jr., a professor of law and economics and the research director of the Office of Tax Policy Research at the University of Michigan’s Ross School of Business.

Both candidates unveiled their plans in Nevada, a state with one of the highest concentrations of tipped service workers in the country. Trump announced a proposal to exclude tips from federal taxes on June 9. Harris announced a similar proposal on Aug. 10.

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Harris’ campaign has said she would work with Congress to draft a proposal that would include an income limit and other provisions to prevent abuses by wealthy individuals who might seek to structure their compensation to classify certain fees as tips.

Her campaign said these requirements, which it did not specify, would be intended “to prevent hedge fund managers and lawyers from structuring their compensation in ways to try to take advantage of the policy.” Trump's campaign has not said whether its proposal would include any such requirements.

Even so, Hines suggested that millions of workers — not just wealthy ones — would seek to change their compensation to include tips, and could even do so legally. For example, he said, a company might set up a separate entity that would reward its employees with tips instead of year-end bonuses.

“You will have taxpayers pushing their attorneys to try to characterize their wage and salary income as tips,” Hines said. “And some would be successful, inevitably, because it’s impossible to write foolproof rules that will cover every situation."

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Though supporters say the measures are designed to help low-wage workers, many experts say that making tips tax-free would provide only limited help to those workers.

The Budget Lab at Yale, a non-partisan policy research center, estimates that there were 4 million U.S. workers in tipped occupations in 2023. That amounted to about 2.5% of all employees, including restaurant servers and beauticians. Tipped workers tend to be younger, with an average age of 31, and of lower income. The Budget Lab said the median weekly pay for tipped workers in 2023 was $538, compared with roughly $1,000 for non-tipped workers.

As a result, many tipped workers already bear a lower income-tax burden. In 2022, 37% of tipped workers had incomes low enough that they paid no federal income tax at all, The Budget Lab said.

“If the issue is you’re concerned about low-income taxpayers, there are a lot better ways to address that problem, like expanding the Earned Income Tax Credit or changing tax rates or changing deductions,” Hines said.

In her speech in Nevada, Harris also called for raising the federal minimum wage. (The platform on Trump’s campaign site doesn’t mention the minimum wage.)

Changing federal tax policy on tips would also be costly. The Committee for a Responsible Federal Budget, a non-partisan group, estimates that exempting all tip income from federal income and payroll taxes would reduce revenue by $150 billion to $250 billion between 2026 and 2035. And it said that amount could rise significantly if the policy changed behavior and more people declared tip income.

Whether Trump or Harris wins the presidential election, tax policy will be high on Congress’ agenda in 2025. That’s because Trump-era tax cuts, passed in 2017, are set to expire. But Hines said he thinks Congress will be in no hurry to add “vast amounts of complexity” to the tax code.

“A presidential candidate can say whatever they want, but it's the House and Senate that have to do it,” he said.

[rose-quart24]

been working on romanticizing my life bc i honestly have a lot to be grateful for despite all the hardships i've faced

so here's a short gratuity list

i have amazing parents and a sister (wish i got to see them more though)

i go to a great university and i'm studying a subject i love (conservation biology woooo!)

just landed a really cool summer internship

my plant collection is growing and they bring me a lot of joy

btw this is not me trying to flex. ive worked really hard to make good things happen for myself and i sometimes just need to remind myself of that

[dwuerch-blog]

Lunar New Year 2023 - the Year of the Rabbit

“Happy New Year!” That’s what we said to our hostess at Pao’s Chinese Restaurant on Sunday. The moment we said those words, her eyes brightened. She said: “Oh, I have something for you!” When she returned, she had red envelopes for each of us. She explained: “This is tradition!” In my inquisitive manner, I had to google the red envelope and its contents. In Middle East countries (and here in…

[90s-kid-sad-adult]

Capitalism

[jaagrukbharat]

What Does Gratuity Mean? Who Are Eligible For It? What Does The New Rules In 2024 Say?

Employees serving in the workforce contribute to the businesses and development for their entire life. At the time of retirement, many companies give gifts to their employees. In factories and small workplaces, gratuity is given by the employer to the employees for their service. Let us learn more about the details of gratuity.

[antvnger]

tbh I think restaurants adding gratuity to the bill and then expecting more on top of it is weird

Yeaaaaah, I don’t really understand that one either, Anon.

I think maybe that’s just restaurants looking out for their tipped employees? I don’t know that for sure, but I’d like to think that’s what’s up.

Normal things you think are weird?

[soolegal]

𝐖𝐡𝐚𝐭 𝐭𝐨 𝐝𝐨 𝐢𝐟 𝐞𝐦𝐩𝐥𝐨𝐲𝐞𝐫 𝐫𝐞𝐟𝐮𝐬𝐞𝐬 𝐭𝐨 𝐩𝐚𝐲 𝐠𝐫𝐚𝐭𝐮𝐢𝐭𝐲?

For further information, refer to this News Report By SoOLEGAL

[rightnewshindi]

मातृत्व लाभ और ग्रेच्युटी का लाभ नहीं दे रहे शिक्षण संस्थान, श्रम विभाग ने 15 संस्थानों को भेजे नोटिस

मातृत्व लाभ और ग्रेच्युटी का लाभ नहीं दे रहे शिक्षण संस्थान, श्रम विभाग ने 15 संस्थानों को भेजे नोटिस #News #RightNewsIndia #RightNews

श्रम विभाग ने कर्मचारियों को मातृत्व लाभ और ग्रेच्युटी का लाभ न देने वालों संस्थानों पर शिकंजा कसना शुरू कर दिया है। शिमला जोन के तहत विभाग के श्रम निरीक्षकों ने 50 से अधिक शिक्षण संस्थानों का निरीक्षण किया है। इनमें 15 संस्थानों को कानून का उल्लंघन करने पर नोटिस जारी किए गए हैं। यदि यह संस्थान कानून का पालन सुनिश्चित नहीं करते तोे अब इनके खिलाफ कानूनी कार्रवाई होगी। मातृत्व लाभ (संशोधन)…

[navysk]

Breaking News: Prices Quietly Increases On Gratuities!!!

[emilyj90]

Gratuity Funds: Employee Benefits in the Company

Gratuity funds are an essential component of employee benefits, designed to provide financial security and stability to employees when they leave a company after a long tenure.

What Is Gratuity Fund?

A gratuity fund is a financial benefit employers provide their employees as a gesture of gratitude for their long-term service. This fund is typically paid out when an employee retires, resigns, or is terminated after completing a specified period of continuous service, often five years or more. The primary objective of this fund is to offer financial support and stability to employees after their tenure with the company ends.

Eligibility Criteria for Gratuity Fund

Minimum Service Period Employees typically must complete at least five years of continuous service with the same employer to qualify for gratuity. This period can vary depending on the country’s labor laws and company policies. However, in cases of death or disability, the five-year rule is often waived, and gratuity is paid regardless of the length of service.

Continuous Service Continuous service refers to an uninterrupted period of employment. While some breaks are permitted, such as leaves sanctioned under the company’s leave policy, unauthorized or prolonged breaks may affect the continuity of service.

Termination of Employment Gratuity becomes payable upon employment termination, including retirement, resignation, superannuation, or death. Employees may forfeit their right to receive gratuity in the case of termination due to misconduct.

Types of Employees Gratuity applies to all employees, whether full-time, part-time, or contract-based, provided they meet the minimum service period. However, the specific gratuity fund rules and eligibility may vary based on the type of employment and the employer’s gratuity policy.

Specific Company Policies Some companies may have additional criteria or conditions for gratuity eligibility, such as performance benchmarks or specific employment categories. Employees should review their employment contracts and the company’s gratuity policy for specific provisions.

Exceptions Certain exceptions apply, such as in the case of fixed-term contracts or when employment is terminated due to reasons beyond the employee’s control (e.g., company closure). Additionally, employees in specific sectors or industries may have different eligibility requirements based on collective bargaining agreements or industry norms.

The Importance of Gratuity Fund in Retirement Planning

Gratuity funds are crucial in retirement planning, offering financial security and stability. These funds provide a lump sum payment upon retirement or resignation, helping retirees manage expenses and maintain living standards. As supplementary income, gratuity funds complement other retirement savings, enhancing financial plans. They reward employees’ loyalty and long-term service, boosting morale and providing tangible post-retirement benefits.

Gratuity payouts are attractive components of retirement planning. They encourage long-term employment, benefiting both employees and employers. Additionally, this fund act as a hedge against inflation, helping retirees handle rising living costs. For employers, offering a gratuity fund shows care for employees’ welfare and improves the company’s culture and reputation. Overall, gratuity funds are crucial for a secure and comfortable retirement.

Read more: FinxpdX

[jamespoeartistry]

Affirmations and Gratuity

[i-still-mask-because]

Hello! I'm putting out there that I have a ko-fi! Payment isn't required for submissions of course; it's just an option if you'd like to support me for running this blog & answering questions! ☕

[hrspot]

[90s-kid-sad-adult]

Please tip accordingly

[kapadiaglobal]

Having the expertise of more than 30 years in the Investment Fund Advisory for Group Gratuity Trusts

we have a competitive advantage over others. Our strong team of experts regularly monitors different funds and their performances to provide the best insights and portfolio mix relevant to our clients. To know more, please visit: www.kapadiaglobal.com #Kapadia #ActuarialValuation

[sensiblecompliances]

Haryana Minimum Wages Revised w.e.f 01-01-2024

Labour Department of Haryana has issued the notification dated 22-02-2024 regarding the revised minimum wages for the state which is applicable from 01-01-2024.

To download the complete official notification/judgement please visit www.sensiblecompliances.com.