TKC EXCLUSIVE AND BREAKING NEWS!!! SHOW-ME KANSAS CITY RESTAURANT RAGE AGAINST MISSOURI TIP AUDIT TALK!!!
This morning we've got more info on one part of a Kansas City restaurant crackdown that's causing quite a ruckus among the local service industry set.
To wit . . .
CHECK THIS EXCLUSIVE KANSAS CITY TESTIMONY FACT CHECKING UPCOMING MISSOURI TIP AUDIT LEGISLATION!!!
The behind the scenes beef here is that KCMO and Missouri like to talk a good game about being biz friendly but this kind of crackdown is EXACTLY what is driving biz across the State Line.
Take a look:
Every small business in MO should be concerned by an over-zealous Dept of Revenue in a fashion tantamount to a shakedown. It is ridiculous to remove the burden of Missouri Income tax from the employee who knowingly and willfully understates his/her income and place the burden on their employer. If this policy were to be upheld it would only provide a disincentive for employees to follow the law and report all of their cash tip income.
It's not just a sales tax audit which is fine, they are holding the employees responsible for an employees income tax at the highest rate of 6%. Employers have no authority to allocate additional cash tip income to employees. Are we to ask that they empty their pockets and purses at the end of each shift to make sure? It is also incorrect for the DOR to assume that customers leave cash tips at the same percentage they do on a credit/debit cards. Everyone in the industry knows that to be true but the DOR think they know better. The Dept of Rev has NO statutory authority for these assessments.
The Missouri Restaurant Association has been working on this problem for some time but they had to wait until Jeff City was in session to support HB 754 and SB 336 to try and get this fixed. HB 754 will have its first hearing February 17 @ 5:00 pm if the weather doesn't shut down the Capitol . . .
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Developing . . .
What do you expect with Jay Nixon as governor. He hates small business, always has. The same is true of Sly James. They made their careers by suing and taxing small business out of existence.
ReplyDeleteWhy is NO media reporting this ? Why is the lone source of this news TKC?
ReplyDeleteGreat work TKC.... a very sad day for local media...Kansas here we come...
Because restaurants are notorious for being in arrears on back taxes and everybody knows it except you nitwits and that it happens constantly and it's not even all that interesting?
ReplyDeleteAnd of course there's the media conspiracy to keep this out of the headlines.
That and the reptiles.
What about the food trucks. They paying their taxes or just pretending they do or thinking maybe someday I'll be able to get caught up when I become profitable.
ReplyDeleteIt's becoming like the KGB is running things. The state wants to make every free citizen an agent or snitch for the state. We have drunks off the streets conducting safety inspections for the Public Utilities Commission. We want employers to be the enforcement arm of the tax authorities. We create these freaking neighborhood associations and encourage them to snitch on everyone in their area who might violate the most incredibly stupid basic ordinances on earth. We build multi milion dollar dog pounds and then expect the non profit ASPCA to enforce pet laws. We are turning our citizens into victims of the state, not good citizens. When are the voters going to sober up and put a stop to it? If this keeps up bureaucrats will be nothing but executives supervising snitches. I do't believe that is how it is supposed to work. Part of that business about laws is that there has to be a balance. If we are going to enforce every law strictly against every citizen this will soon become the most miserable country on earth. The government needs to stop demanding and start serving.
ReplyDeleteCity Hall needs to make that toy train study interest payment on the money they borrowed for it.
ReplyDeleteYawn. Fox News says it is Hilary's fault.
ReplyDeleteIts not just the 'small business' restaurants that DOR is conducting these audit on, but also local restaurants that are part of national chains.
ReplyDeleteMost restaurants tax 8% to the wait staff for Gross Food Sales so it's no surprise the restaurants are sweating balls these day. They got some serious wage theft they been getting by with.
ReplyDelete1:49 Anon,
ReplyDeleteWait staff self reports their tips, there is no 8% tax....
The restaurant takes the declared tip income and withholds the income tax and pays it to the state.
For decades, servers who work in the industry have promoted that if you don't decalre at least 8% of your sales as tips that you could flag yourself for an audit.
What the state has done is audit restaurants and looked at servers cash tips vs. their tips received by credit card. They see servers earning 15%-25% tips from credit sales and the server claiming 0-5% for cash sales. When total sales were combined servers were claiming 8-15%.
But rather than auditing individual servers which would take a lot of resources to audit, the Mo. Dept. of Rev. said, "hey restaurant, YOU should have made them sign a written statement DAILY that they were under reporting." It is not enough to make them sign-off when they get their check once a week or bi-weekly. If the restaurant made them sign a piece of paper 5 days a week the restaurant would not be held accountable. If you only have them sign once a week then the restaurant will be held liable.
So rather then try to collect from the servers, we are going to make the restaurant pay the difference based off a percent the MDR formulates....
So what you are saying is, despite earlier hysterics, this audit, in point of fact, has...
ReplyDeleteNOT A SINGLE FUCKING THING TO DO WITH THE STREETCAR!!!!!!!
I love how everyone including TKC blamed it on streetcar when the news first broke. What does the sheep say?
ReplyDeleteAnd nothing to do with sales tax either.
ReplyDelete