The tax season is upon us, and many restaurant owners are looking forward to getting paid. But there are some things you need to know about how deductions work and how they affect you. If you're wondering whether you'll owe taxes on certain items, read on to find out how it works. If you run a small business, chances are you've heard of the term "deductions." A deduction is basically a write off that reduces taxable income. Some examples include depreciation, interest payments, and charitable contributions. A deduction is usually taken against gross sales. So if you sell $10,000 worth of merchandise, you'd pay taxes on $10,000, plus whatever deductions you take. However, if you deduct $1,500 in advertising costs, you'd only pay taxes on $9,500 of revenue. You can't claim a deduction just because you want to. You must meet specific requirements. And even if you do meet those requirements, you still might not be able to claim the full amount. That's where the concept of a "tax credit" comes into play. A tax credit allows you to reduce your tax liability without actually reducing your profits. Instead, you simply subtract the amount of the credit from your total income. This creates a negative number, which makes the net profit look better. Here are some common ways businesses use tax credits: • Advertising - Businesses can deduct up to 30% of qualified advertising expenditures. Qualified advertising includes everything from TV ads to print ads.

Advertising is a great way to draw attention to your restaurant, but it's important to think about what else you could do. There are plenty of free channels where people might see your ads, like social media, local news sites, and even online forums. You don't necessarily need to invest a ton of money into advertising if you've got strong reviews and a solid reputation. If you're willing to put some effort into promoting yourself, you'll find that most people are happy to help out.

Comped

Equipment

Restaurant staffing costs are one of those expenses that you don't want to ignore. They're often overlooked because many people think it's just something that happens automatically once you open up shop. However, there are some things you can do to reduce your staffing costs and make sure you're getting the most bang for your buck. The IRS requires restaurants to report their staffing costs annually. In addition, the IRS allows businesses to deduct certain types of expenses from their taxable income. These deductions are known as "miscellaneous itemized deductions." One of the miscellaneous itemized deductions allowed by the IRS is for "employee benefit programs," such as health insurance premiums. If you pay for your employees' health insurance premiums out of pocket, you can deduct the cost of the premium as a miscellaneous itemized deduction. You must meet three criteria to qualify for this deduction: 1. Your business must provide medical care benefits to its full-time employees. Full-time employees are defined as anyone who works 30 hours per week or more. Part-time workers aren't considered full-time unless they work at least 20 hours per week. 2. You must purchase group coverage from an insurer licensed to sell insurance in your state. Group plans usually cover everyone working for the same employer. 3. You must pay for the plan directly, rather than having your employees contribute to a fund that covers the entire organization. For example, if you set up a cafeteria plan where each employee contributes a portion of his/her salary toward the cost of the plan, you cannot claim the deduction. Instead, you'd have to pay the full cost yourself. If you use a third party to administer your employee benefits program, you'll still have to pay the administrator directly. But, if you use a self-administered plan, you can deduct the amount you spend on administrative fees. Self-administered plans typically allow employers to choose how much money to put into the plan.

Equipment
Food Costs

Food Costs

A new report from Consumer Reports found that most major brands of household appliances don't meet safety standards set by the Consumer Product Safety Commission (CPSC). The CPSC requires products sold in the United States to pass rigorous tests before being allowed to hit store shelves. But according to the consumer watchdog organization, only about half of the major brands it tested passed those requirements. The study looked at 10 categories of home appliances including refrigerators, freezers, dishwashers, washing machines, dryers, air conditioning systems, water heaters, range hoods, ovens, and microwave ovens. Only one refrigerator and five ranges met the CPSC's standard. In fact, only three of the 18 different types of washing machines and four of the 15 different types of dryers did. And only six of the 12 different types of ovens and microwaves passed. Consumer Reports says that some manufacturers are voluntarily following the CPSC's guidelines, while others aren't. "We're seeing a lot of voluntary compliance," said David Lazarus, director of the Center for Science in the Public Interest, a nonprofit consumer advocacy group. "But we still see a number of companies that are not." In addition to the CPSC's strict testing requirements, the organization recommends that consumers check the warranty information on each product. If there isn't a manufacturer's warranty, Consumer Reports suggests checking with local retailers and asking what warranties they offer. According to Consumer Reports, there are several reasons why so few products pass the CPSC's test. For example, the agency doesn't require certain parts like motors and switches to be covered under a warranty. So even though a particular brand might say something about its motor, it could actually be a third party part. Another issue is that the CPSC allows manufacturers to use different materials depending on where the product is manufactured. This makes it difficult for consumers to know exactly how well a product will perform over time. Finally, Consumer Reports says that some manufacturers simply haven't been testing enough products to make sure they've got the bugs worked out. "There are just too many products out there," said Lazarus. "And they're coming out every day."

Utensils

The average restaurant meal costs $30-$40 per person. But how much does it really cost? And where are those numbers coming from? Let’s take a look.

Utensils
Legal Fees

Singleuse items must be available throughout any event. This includes utensils, plates, cups, glasses, napkins, flatware, knives, forks, spoons and straws. If you don't provide enough choices, guests will be charged.

Table Items

Starting a new business can be expensive. You'll likely need to hire employees, purchase equipment, and buy supplies. All those expenses add up quickly. But there are some things you can do to keep costs down. One way to reduce the amount of money you spend on legal fees is to find a good attorney. But how much does it really cost to start a business? What factors go into deciding what price to charge clients? And how can you avoid paying too much? To answer those questions, we talked to three attorneys about their experience running businesses and how they've been able to cut legal fees.

Table Items

Frequently Asked Questions

Tipping is customary in America, especially at fine dining establishments. Tipping is never mandatory, though, so if you prefer not to leave any extra change, that's okay.

You may want to choose a table near the kitchen or bar area. These locations tend to get busy faster than tables away from the action.

It's possible that he/she just doesn't like the atmosphere or service. Try asking him/her what he/she likes about the place instead of assuming that he/she hates it.