Below is a preview of one of the articles in the new KROST Quarterly Hospitality Issue, "The Battle to be a Profitable Restaurant: How to Deal with Employee Theft" by Aric Wong, CPA, Manager - Tax.
"With 72,000+ restaurants in California, the state does everything possible to ensure taxes are properly reported, collected, and paid in order to fund hundreds of public programs.
As of the 2016-17 fiscal year, California’s sales and use tax revenue accounted for 21.4% of total state revenue, second only to state personal income taxes, which accounted for 50% of total state revenues.1 According to the 2016-17 Board of Equalization Annual Report, 20% of revenues collected due to noncompliance of sales tax laws come from the food service industry.2 Because of this, it is to be expected that California’s new sales tax collection and enforcement agency, the CA Department of Tax and Fee Administration (CDTFA), will continue to be aggressive.
Sales tax generally applies to the sale of food and beverage if served..."
Click below to read more on California’s sales and use tax
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KROST Quarterly is a digital publication that highlights some of the hot topics in the accounting and finance industry. Volume 2, Issue 2 covers hospitality trends and news including California sales tax compliance, employee theft, data breaches, Wage Order 7, trends in restaurant technology, and more.