Eliminating tipping could be a way for full-service restaurants
to mitigate tax and legislative risks. The boost in hourly wages to
adjust for having no tips and keeping employees’ pay whole could
create breathing room against a barrage of municipal, state and
federal actions to adjust the minimum wage.
The move could also simplify record keeping and reduce the
risk of restaurants being audited and having to pay back FICA
(Federal Insurance Contributions Act) taxes on underreported
or unreported tips by employees.