No Tax on Tips? What Restaurant Operators Need to Know Now
Modern Restaurant Management
JUNE 16, 2025
A new piece of legislation has recently caught the attention of restaurant workers and employers alike: the No Tax on Tips Act. Both the House and Senate have introduced versions of the bill, which, if passed, would allow tipped workers to exempt a portion of their tip income from federal taxes. The proposal fulfills campaign promises from both sides of the political aisle, but for restaurant operators, it raises real and immediate questions.
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