If you work in a service where you get tips, guess what? The IRS expects you to report them and pay taxes on them.
The internal revenue service takes a very simple approach to tips. It views all tips you make in your job as taxable income that must be reported and for which taxes must be paid. Put another way, the IRS has a simple but brutal view towards taxes
Now tips come in different forms. Some are received directly from customers while others are automatically added to the customer’s bill. The IRS takes the position you must report and pay taxes on both amounts. This also includes taxes you earn through any group splitting where all tips are collected together and then split amongst the employees. On top of this, the IRS also takes the view that any non-cash tips such as tickets to something are also income that should be reported and taxes paid on. Put another way, the internal revenue services gets you coming and going.
To make things a little more brutal, the internal revenue service requires you to take some steps in reporting tips. If your tips total $20 or more in any calendar month from a single job, you are supposed to report the total to the employer by the 10th day of the next month. The employer is then supposed to withhold federal income tax, social security and Medicare taxes from your paycheck. Keep in mind that the failure to do so can lead to the placement of a 50 percent penalty on your taxes. Obviously, the IRS is fairly serious about getting its money.
Tips paid to waitresses, bartenders, barbacks and so on are a hot spot with the IRS and always have. Since tips tend to be given in cash form, the potential for forgetting to report them is particularly high. The IRS seems to think so and has shown a generally aggressive attitude on the subject. If you indicate you are a waitress or bartender on your tax return, but fail to report any tip income, it could be audit time.
Friday, July 9, 2010
Thursday, July 8, 2010
Bartending School Is Just The Beginning
While you may be thinking about attending bartending school, keep in mind that a bartending career is not all fun and games.
Bartenders work hard, and are often paid minimum wage. Working at a top club will, of course, up your take-home pay in the form of tips (sometimes as much as thousands per night), but you'll have to do your time and gain experience at smaller clubs and bars first. Initially, you’ll also work the less crowded shifts.
Some bars and clubs even require new bartenders to work as barbacks first – this means you’ll be schlepping beer and liquor from the storage room to the bar, washing glasses and cleaning up. Not nearly as glamorous as you might have dreamed. As a barback, you’ll earn a portion of the bartender’s tips for the night.
The hours are often long, you're on your feet the whole time and might have to deal with a lot of rude customers. Aside from that, once you’ve moved up in the ranks and have the popular, crowded shifts – those that you make the most money with – you’ll never have Friday or Saturday nights free. You’ll be working.
If you still are thinking about attending bartending school, make sure you pick a reputable organization. You can also attend bartending school online. Many bartending schools offer job placement assistance one you finish your courses – if you don’t have a job lined up already, you’ll want help finding one.
The best bartenders have an outgoing personality, are patient and tolerant of customers who may have had one too many and are able to multitask and work under pressure. Remember, you’ll be on a virtual stage once behind the bar, with a lot of eyes watching you!
Once you’ve completed bartending school and started your first job, know that you will make mistakes. It’s your ability to recover from them with grace and humor that will keep you going.
Bartenders work hard, and are often paid minimum wage. Working at a top club will, of course, up your take-home pay in the form of tips (sometimes as much as thousands per night), but you'll have to do your time and gain experience at smaller clubs and bars first. Initially, you’ll also work the less crowded shifts.
Some bars and clubs even require new bartenders to work as barbacks first – this means you’ll be schlepping beer and liquor from the storage room to the bar, washing glasses and cleaning up. Not nearly as glamorous as you might have dreamed. As a barback, you’ll earn a portion of the bartender’s tips for the night.
The hours are often long, you're on your feet the whole time and might have to deal with a lot of rude customers. Aside from that, once you’ve moved up in the ranks and have the popular, crowded shifts – those that you make the most money with – you’ll never have Friday or Saturday nights free. You’ll be working.
If you still are thinking about attending bartending school, make sure you pick a reputable organization. You can also attend bartending school online. Many bartending schools offer job placement assistance one you finish your courses – if you don’t have a job lined up already, you’ll want help finding one.
The best bartenders have an outgoing personality, are patient and tolerant of customers who may have had one too many and are able to multitask and work under pressure. Remember, you’ll be on a virtual stage once behind the bar, with a lot of eyes watching you!
Once you’ve completed bartending school and started your first job, know that you will make mistakes. It’s your ability to recover from them with grace and humor that will keep you going.
Thursday, July 1, 2010
Bartending News - Touring the Don Q. Rum Distillery, San Juan, Puerto Rico
After the recent P.B.S.A. National Leadership Conference held in San Juan, Puerto Rico, Roger Oldham, President of the Professional Bartending Schools of America toured the Serralles Distillery in Ponce, Puerto Rico. The Serralles Distillery, the makers of Don Q. Rum, is the oldest rum distillery in Puerto Rico and actually distributes and sells more rum in Puerto Rico than the Bacardi Company whose headquarters is in San Juan. Accompanying Roger on the trek across the beautiful country side from San Juan to Ponce was his companion Nancie Nolan, David and Quinn Edwards, Directors of the Nashville campus, and Will Cobbin, Director of the Cleveland, Ohio campus and his companion Karen Stroup.
The PBSA group gathered in the lobby of the Caribe Hilton to embark on their trip to Ponce around 1:00 in the afternoon. They loaded in a new van driven by their trusty driver who was not only very knowledgeable but had a laugh that reminded you of Cheech Marin of Cheech and Chong. His knowledge of Puerto Rico and the various attractions made the long ride to Ponce go very quickly.
Ponce, is a city named after it's founder, Loiza Ponce De Leon, the great grandson of Juan Ponce de Leon. Ponce was founded in 1692 and is known as ÒLa Perla del SurÓ (Pearl of the South). It's the second largest city in Puerto Rico. The people of Ponce are very proud of their city. As our group entered the city limits, we were amazed by the giant letters PONCE reminiscent of the famous Hollywood letters in Hollywood, California.
Entering the grounds of the Serralles Distillery was definitely different than our previous tour of the Bacardi Distillery. Serralles Distillery does not offer public tours so we drove through the gate with little fan fare or fancy entrances. The driver assured us that we were going to see things that very few people outside of the workers of Seralles ever get to see. We were definitely excited.
Meeting us in the lobby was Silvia Santiago, the Senior Vice President of Manufacturing. She had spoken at the PBSA Leadership Conference a few days earlier, and we knew we were in for a treat by getting a personal tour of the facilities by senior management. Also on hand was Alberto Torruella, the Vice President of Manufacturing. Alberto grew up around the Serralles Distillery and has worked at the distillery for many years. His knowledge of Serralles was simply amazing.
The Serralles Distillery started manufacturing rum in 1865. Serralles is the oldest distillery in Puerto Rico, and the largest producer of rum in Puerto Rico, as well as the second largest producer of quality rums in the United States. The flagship brand is Don Q. Rums including Don Q. Cristal, Don Q. Limon, Don Q. Coco, Don Q. Grand Anejo and many other flavors of Don Q. The Serralles Distillery also produces Ron Rico rum, as well as gin, vodka, Creme de Cocoa, Blue Curacao, Triple Sec, and grenadine.
Due to time constraints and only having 1 hour to tour the distillery before the workers stopped production, Alberto started our tour in reverse. We started the tour at the packaging building and worked our way backwards through the distillery. Alberto handed us hard hats and we jumped on golf carts and took off onto the grounds of the distillery. Alberto chauffeuring Will and Karen from Cleveland with David Edwards driving Quinn, Roger, and Nancie on the other golf cart.
Fifty feet into the tour, David almost took out the side of a building in his golf cart and this was before any rum tasting what so ever. Seems there was a lot of play in the steering. After Roger threatened David with a demotion, he got his driving under control.
The tour had many highlights including the warehouses where the barrels were stored, the control room that was literally like the war room of the distillery that monitored all aspects of the rum distillation with about 20 giant computer monitors, and we also visited the electric plant.
Serralles produces their own electric after a hurricane had knocked out the power years ago which halted production for a month. They not only generate their own power now but have back up generators to ensure the world keeps getting it's supply of Don Q. Rum.
After the tour, we went back to Ms. Silvia Santiago's office where she educated us on the many different brands Serralles produces. She also shared some new products with us that are top secret and coming out in the next few months. We tasted a few of the products and I must say we are all now Don Q. fans. Silvia and Alberto shared stories about their many years at Serralles. It was the best and most personal tour any distillery had ever given us. As we departed, Silvia handed us each a gift bag topping off a wonderful afternoon.
Our driver was patiently waiting in the lobby and now it was time to get some food. He drove us to the historical Plaza de las Delicias. We drove around the square looking for a great place to eat. He pointed out the famous firehouse, Parque de Bombas, that years ago saved much of the City of Ponce from a major fire that threatened the whole city. It is now a free museum.
We went to the Bamboleo Restaurant in Downtown Ponce which served fine Mediterranean cuisine. It was early so we had the whole place to ourselves. After enjoying a great meal with our driver, it was time to head back to San Juan.
Professional Bartending Schools of America wants to thank the Serralles Distillery and Silvia Santiago and Alberto Torruella for an amazing day and PBSA looks forward to promoting the Serralles brands in the future.
Written by David W. Edwards
The PBSA group gathered in the lobby of the Caribe Hilton to embark on their trip to Ponce around 1:00 in the afternoon. They loaded in a new van driven by their trusty driver who was not only very knowledgeable but had a laugh that reminded you of Cheech Marin of Cheech and Chong. His knowledge of Puerto Rico and the various attractions made the long ride to Ponce go very quickly.
Ponce, is a city named after it's founder, Loiza Ponce De Leon, the great grandson of Juan Ponce de Leon. Ponce was founded in 1692 and is known as ÒLa Perla del SurÓ (Pearl of the South). It's the second largest city in Puerto Rico. The people of Ponce are very proud of their city. As our group entered the city limits, we were amazed by the giant letters PONCE reminiscent of the famous Hollywood letters in Hollywood, California.
Entering the grounds of the Serralles Distillery was definitely different than our previous tour of the Bacardi Distillery. Serralles Distillery does not offer public tours so we drove through the gate with little fan fare or fancy entrances. The driver assured us that we were going to see things that very few people outside of the workers of Seralles ever get to see. We were definitely excited.
Meeting us in the lobby was Silvia Santiago, the Senior Vice President of Manufacturing. She had spoken at the PBSA Leadership Conference a few days earlier, and we knew we were in for a treat by getting a personal tour of the facilities by senior management. Also on hand was Alberto Torruella, the Vice President of Manufacturing. Alberto grew up around the Serralles Distillery and has worked at the distillery for many years. His knowledge of Serralles was simply amazing.
The Serralles Distillery started manufacturing rum in 1865. Serralles is the oldest distillery in Puerto Rico, and the largest producer of rum in Puerto Rico, as well as the second largest producer of quality rums in the United States. The flagship brand is Don Q. Rums including Don Q. Cristal, Don Q. Limon, Don Q. Coco, Don Q. Grand Anejo and many other flavors of Don Q. The Serralles Distillery also produces Ron Rico rum, as well as gin, vodka, Creme de Cocoa, Blue Curacao, Triple Sec, and grenadine.
Due to time constraints and only having 1 hour to tour the distillery before the workers stopped production, Alberto started our tour in reverse. We started the tour at the packaging building and worked our way backwards through the distillery. Alberto handed us hard hats and we jumped on golf carts and took off onto the grounds of the distillery. Alberto chauffeuring Will and Karen from Cleveland with David Edwards driving Quinn, Roger, and Nancie on the other golf cart.
Fifty feet into the tour, David almost took out the side of a building in his golf cart and this was before any rum tasting what so ever. Seems there was a lot of play in the steering. After Roger threatened David with a demotion, he got his driving under control.
The tour had many highlights including the warehouses where the barrels were stored, the control room that was literally like the war room of the distillery that monitored all aspects of the rum distillation with about 20 giant computer monitors, and we also visited the electric plant.
Serralles produces their own electric after a hurricane had knocked out the power years ago which halted production for a month. They not only generate their own power now but have back up generators to ensure the world keeps getting it's supply of Don Q. Rum.
After the tour, we went back to Ms. Silvia Santiago's office where she educated us on the many different brands Serralles produces. She also shared some new products with us that are top secret and coming out in the next few months. We tasted a few of the products and I must say we are all now Don Q. fans. Silvia and Alberto shared stories about their many years at Serralles. It was the best and most personal tour any distillery had ever given us. As we departed, Silvia handed us each a gift bag topping off a wonderful afternoon.
Our driver was patiently waiting in the lobby and now it was time to get some food. He drove us to the historical Plaza de las Delicias. We drove around the square looking for a great place to eat. He pointed out the famous firehouse, Parque de Bombas, that years ago saved much of the City of Ponce from a major fire that threatened the whole city. It is now a free museum.
We went to the Bamboleo Restaurant in Downtown Ponce which served fine Mediterranean cuisine. It was early so we had the whole place to ourselves. After enjoying a great meal with our driver, it was time to head back to San Juan.
Professional Bartending Schools of America wants to thank the Serralles Distillery and Silvia Santiago and Alberto Torruella for an amazing day and PBSA looks forward to promoting the Serralles brands in the future.
Written by David W. Edwards
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