Picture this: You're a small business owner, finally feeling on top of things. Payroll’s on time, QuickBooks isn’t giving you a migraine, and you only had to explain how to split a bill six ways to your staff twice this week. Life is good.
Then BOOM—someone in D.C. decides “Hey, what if we made tips tax-free?”
Cue the patriotic music. The No Tax on Tips Act (HR482) rolls in like it's going to save the day. Suddenly every server, barista, and hair stylist from sea to shining sea is doing a celebratory twerk behind the counter. And honestly, good for them. But while your staff is dancing, you’re in the back trying to figure out if your business is now going to get hit with a surprise tax boomerang.
Let’s break it down:
✅ Employees don’t pay federal income tax on tips.
❌ But YOU still pay payroll tax on every single cent of those tips.
🤕 And if your team suddenly starts reporting every single dollar (because why not?), your share of that tax goes UP.
Talk about a plot twist. You thought you were handing out rewards—now you're footing the bill for everyone's "extra honest" reporting.
Yes, this sounds like a restaurant or hair salon issue… but don’t start relaxing yet. Entrepreneurs being entrepreneurs, folks are already asking, “Wait, can I just start adding a ‘tip jar’ to my law firm invoices?” Spoiler alert: no, you can’t, unless you were getting tips in 2023, and even then—don’t get greedy, counselor.
Treasury is planning to release a list of “tip-worthy professions” soon, and something tells me “CPA” or “Growth Strategist” isn’t on it (rude).
As your friendly neighborhood number nerds at Calculated Moves, we’re here to say:
👉 Now is the time to separate your wage tracking and get your payroll system in tip-top shape. (Pun absolutely intended.)
Because this law could be retroactive, and if your systems aren’t ready, you’ll be left scrambling with spreadsheets at midnight, crying into your fourth cup of decaf, whispering “It was just a latte and a $5 tip…”
We recommend using tools like Gusto or OnPay that can handle tip tracking without making your brain hurt.
At Calculated Moves, we’re not just here to file your taxes and fix your QuickBooks chaos. We’re your growth partner, helping you steer your business away from tax traps and time-sucking distractions so you can get back to doing what you actually love—like building your empire or just getting home in time for dinner.
You’ve got better things to do than worry about whether Jimmy over-reported his tips so he could buy a Camaro. Let us handle it. You handle the dream.
📌 Read the full breakdown on why this “No Tax on Tips” idea might sound good on paper—but could cost small businesses a lot more in the long run.
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Donna Bordeaux, CPA with Calculated Moves
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.