Sorry. Maybe my question wasn't clear. If our company has a $40 line-item charge on client invoices for "Gratuity" can I legally payroll my staff 80% of this amount ($32) to compensate for my employer payroll taxes paid?
Are there any laws that prevent me from doing this?
I'm trying to rate you "okay" but clicking on the icon doesn't seem to register.
What I need is a legal remedy to solve the problem of losing $.20 of every dollar the customer pays us earmarked for gratuity.
Item #6 in link below from the CA Dept. of Industrial Relations clarifies with regard to Labor Code Sec. 351 that money paid by the client to California Parking is in the form of a “mandatory service charge” is NOT considered a tip or gratuity. Our policy of crediting 80% does not violate state law.
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