H.R. 8401, known as the "Restaurant Service Charge Fairness Act," proposes changes to the Internal Revenue Code of 1986. The bill aims to allow employers to receive a tax credit for part of the Social Security taxes they pay on service charges given as wages to employees....
Simple Explanation
Imagine a restaurant that gives extra money to their workers when customers pay. This bill wants to help the restaurant by letting them pay less tax on this extra money, but they have to choose between getting a tax break for these extra payments or for regular tips, not both.