Changing Tax Laws to Affect Restaurants


Follow Garrett Wymer on Facebook and Twitter.

STAUNTON, Va. (WHSV) -- As local eateries close out 2013, a new law could make them rethink old habits when it comes to dining out in groups.

The next time you eat out, the bill could look a lot different.

The change could also mean less of your tip finding its way into your waiter's pocket.

The IRS will soon start considering automatic gratuities as a wage, not a tip.

Michael Digrassie, the owner of Mrs. Rowe's in Staunton said the new rule means less money for servers and more paperwork for restaurants.

Under the rule, those automatic gratuities will become part of servers' taxable income.

Digrassie, said the decision could cut how much servers make considerably.

For the restaurant, he said the new rule is just another headache.

"It's a pretty simple change, it's just like with everything, just gets to be another regulation that you have to live with. We have enough regulations in the restaurant industry. We don't need any more," said Digrassie.

He also said at Mrs. Rowe's they only add an automatic gratuity when they have a large buffet party; however, with the new rule, they're going to stop adding that automatically.


WHSV.com is happy to provide a forum for commenting and discussion. Please respect and abide by the house rules:

Keep it clean, keep it civil, keep it truthful, stay on topic, be responsible, no links, share your knowledge, and please suggest removal of comments that violate these standards.

powered by Disqus
WHSV-TV3
50 North Main Street Harrisonburg, VA 22801 540-433-9191 - Switchboard 540-433- 4028 - Fax 540-433-2700 - News Fax

WSVF Public Inspection File

Gray Television, Inc. - Copyright © 2002-2014 - Designed by Gray Digital Media - Powered by Clickability 238313921 - whsv.com/a?a=238313921