Small business owners are under a lot of pressure during the annual tax season. But once you've prepared and filed your forms, take a bit of time to learn from the process to prepare for next year. It's helpful to evaluate your process and your accountant's performance (if you used one) to determine if a higher level of service is right for your business.
Last month the Minnesota Department of Labor & Industry released it's 2015 Minimum Wage Report. Restaurant owners are acutely aware that the state raised the minimum wage to $9.00 an hour effective August 1, 2015. The report indicates more than half (57%) of hourly workers employed in eating and drinking establishments earned the minimum wage, by far the highest percentage among industries. Given that tips are a significant aspect of employee compensation and many foodservice employees receive the minimum wage, restaurant owners need to be very familiar with Minnesota laws regarding tip credit, pooling, and sharing.
While we strongly advise every small business owner to partner with an accounting firm for tax preparation and filing, we understand that many restaurant owners are simply not aware of certain tax provisions that could save them a lot of money.
Because restaurants have unique costs, you are eligible to claim deductions to reduce taxable income. By maximizing your tax deductions, you lower the reported profit for your restaurant, which helps minimize the taxes you owe.