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Article: Michigan Restaurant Association: U.S. Supreme Court Ruling Hurts Restaurants, Small Businesses; Service Industry Employees Will Be Hurt Most.
- Article from:
- PR Newswire
- Article date:
- June 17, 2002
CopyrightCOPYRIGHT 2002 PR Newswire Association LLC. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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LANSING, Mich. -- The U.S. Supreme Court today ruled that the Internal Revenue Service (IRS) has the right to charge restaurants, and other establishments with tipped employees, additional Social Security taxes if they think employees are underreporting their tips, according to Michigan Restaurant Association.
"This is a devastating blow to the restaurant industry and could be the difference between an establishment staying in business or closing its doors," said Rob Gifford, executive director of the Michigan Restaurant Association. "The ruling negatively affects our nation's 200,000 restaurants and every business with tipped employees such as hair salons, taxi ...