Tips, Auto-Gratuities, and Service Charges at Massage Studios: Tax Treatment, Tip Adjustment, and Paying Them Out

Massage studio tips and service charges need separate tax, payroll, and payment workflows. A voluntary client gratuity can be a tip, while a mandatory auto-gratuity or service charge generally is not. Card tips must be attributed and reported correctly, service-charge distributions to employees are generally wages, and payout rules differ...