What’s the ‘Invisible Income’ Problem?

New W-2 reporting requirements and increased scrutiny on tip income are creating a data crisis for restaurants. While operators are aware tips and overtime are subject to FICA and often local/state taxes, many legacy payroll systems can't handle this more complex tax logic in real time. Elizabeth Oviedo, CEO of Symmetry, highlights the "invisible income" problem, and what best practices operators should put in place.

What are the new W-2 requirements restaurant operators need to be aware of that they might not already know?Restaurant operators must be vigilant about new W-2 requirements for tip income, as the IRS is scrutinizing proper reporting of all compensation, including cash and non-cash tips, and distinguishing service charges from tips.. With the rise of digital payment methods, operators need to ensure their payroll systems can accurately capture and report tips received through credit card and app-based transactions, as well as distributed tips among employees. The IRS is…