The Case for Diverse Revenue Streams

The Department of Labor’s final tip rule is scheduled to take effect on December 28, 2021. As drafted, the final rule will limit the amount of time tipped employees can spend performing non-tip-producing work while still receiving cash wages as low as $2.13 per hour.

The past 18 months have ushered in immense hardship in the restaurant industry as the nation and the world try to find a new normal in the midst of the COVID-19 pandemic. Historic supply chain disruptions, labor shortages and now inflation are complicating recovery even further.

As stated in past blog posts, one of the most beneficial COVID-19 tax relief measures for the restaurant industry is the employee retention credit (ERC).

More than a year ago, no one could have predicted the unprecedented challenges faced by so many restaurants around the world due to a major global pandemic. Customer demand for convenience and flawless digital experiences are on the rise and further fueled by the pandemic.

Since the outbreak of COVID-19, the restaurants industry has been one of the hardest hit by the pandemic’s impacts, leading to spikes in business closures, continued capacity limitations, and unprecedented loss in both jobs and sales.

BDO’s team of experts can help you compute and maximize your ERC.