Unfiltered Profit

Tips, Taxes, and What the Law Actually Says


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Are you handling tips correctly in your business, or is your POS system secretly putting you at risk?

Many business owners assume that when a Point of Sale (POS) system automatically adds a tip line, everything is handled correctly—but the truth is, tips are more complicated than they seem. From payroll taxes to tip pooling, employee classification, and state-specific laws, getting it wrong could cost you—both financially and legally.

In this episode, we break down the messy world of tipping, explore the common mistakes business owners make, and show you how to ensure you’re doing it right. Whether you’re a small business owner running a solo operation or managing a team, this conversation is packed with clarity and actionable insights.

BY THE TIME YOU FINISH LISTENING, YOU’LL LEARN:

✅ What counts as a tip and why it must always be voluntary.

✅ The differences between tip credit and tip pooling, and how to apply them legally.

✅ How POS systems can complicate tip distribution and what to watch out for.

✅ Why consulting with an employment attorney is essential to stay compliant and protect your business.

Tips can be a fantastic way to reward your team—but only if they’re handled correctly. Listen in to make sure your business stays profitable, legal, and tip-smart.



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Unfiltered ProfitBy Caitlynn Eldridge and Seanna Asper