November 2010 Archives

The National Restaurant Association's Senior Vice President of Research Hudson Riehle was a guest on CNBC's Street Signs with Erin Burnett today, sharing his insights on the state of the restaurant industry.

As a backdrop, the Association today released its latest Restaurant Performance Index, which reached a three-year high in October. Riehle credits employment growth and increasing household income with contributing to improving industry performance. Americans spend almost half (48%) of their food budget in the restaurant community.

Watch the clip on CNBC's website.

International visitors to the United States in September pumped about $11.7 billion into the economy, according to new Commerce Department data.

More travel to the United States means more business for American restaurateurs. Tourism represents 15 percent to 40 percent of restaurant sales, depending on the type of restaurant business, according to National Restaurant Association research. When tourism spending increases, it contributes to restaurant sales growth.

International visitors have spent about $100 billion on U.S. travel and tourism-related goods and services between January and September, up 11 percent from the same period last year.

Watch our latest restaurant industry update video, where the National Restaurant Association's Senior Vice President of Research & Knowledge Hudson Riehle talks about the October Restaurant Performance Index and industry outlook for the holiday season, including the importance of gift cards.

Previous industry update videos are available in the Research & Insights section of this website.

Fueled by improving sales and traffic levels in October, the National Restaurant Association's Restaurant Performance Index (RPI) rose to its highest level in more than three years. 

"October's RPI gain was driven by continued improvements in the same-store sales and customer traffic indicators," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the Association.  "Most notably, a majority of restaurant operators reported higher same-store sales in October, the first such occurrence since August 2007."

The RPI stood at 100.7 in October, up 0.4 percent from September and strongest level since September 2007.  In addition, the RPI stood above 100 for the second consecutive month, which signifies expansion in the index of key industry indicators. The RPI is a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry.

The National Restaurant Association is encouraging its members to sign a broad-based business community letter to Congress urging extension of expiring 2001 and 2003 tax cuts.

The U.S. Chamber of Commerce is coordinating signatures on the letters, which go to Capitol Hill this week. All names must be added by close of business on Wednesday, Dec. 1.

"We ... strongly urge Congress to end the tax uncertainty plaguing the business community by extending the expiring 2001 and 2003 marginal tax rates, as well as dividend  and capital gains tax rates, and the business tax provisions that expired at the end of 2009," the letter says.

"A permanent extension of all current tax rates would, in one bold stroke, boost investor, business, and consumer confidence by taking the uncertainty of tax policy off the table. It would leave hard-earned income in the hands of the individuals and businesses that earned it."

Sign the letter here by Dec. 1, 2010.

The restaurant industry will continue to show signs of improvement this holiday season, leading to the strongest outlook in recent years, according to the National Restaurant Association.

"Stronger consumer spending and gift card sales will help boost revenue for the nation's nearly one million restaurant and foodservice outlets this holiday season," said Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association.

Growth in real (inflation-adjusted) personal disposable income, better consumer confidence and modest employment increases form the foundation of the best holiday outlook for restaurants in several years.

In his latest "Economist's Notebook" commentary, the National Restaurant Association's Chief Economist Bruce Grindy discusses the latest trends in income and spending.  Although the national economy has expanded in five consecutive quarters, income and spending growth remains extremely sluggish. 

Although the national economy has expanded in five consecutive quarters, growth remains relatively modest.  The national economy grew at a 2.5 percent annualized rate the in third quarter of 2010, as measured by real gross domestic product.  This was revised upward from the previously-reported 2.0 percent gain, and was an improvement over the 1.7 percent increase posted in the second quarter.  

With the economic recovery struggling to gain traction, income growth has also remained modest.  Disposable personal income - a key indicator of restaurant sales performance - is only on pace to grow at a paltry 1.2 percent inflation-adjusted rate in 2010, up slightly from the modest 0.6 percent increase posted in 2009 but below the 1.7 percent gain in 2008.  This would represent the slowest three-year period of income growth on record, since the Bureau of Economic Analysis began reporting data in 1947. 

Organic foods are widely regarded as impractical for restaurant chains, but that view isn't shared by 225-unit Jason's Deli. Co-founder and owner Rusty Coco explains why the Beaumont, Texas-based fast-casual operation has a different take.

Q. Chains say they can't offer organics because of the high price and low supplies. Yet there are 41 organic listings on your menu. How is Jason's able to do it?
A. It's hogwash that you can't. Organics are more expensive, but they're not that much more expensive. When you really cost this stuff out, it doesn't do that much to margins. A whole salad bar of organics may not be doable. But sprinkling a few organics throughout your menu, that's meaningful.

Q. How are you able to find enough supplies?
A. We have a very good rapport with our suppliers. If you have volume, they'll grow it for you. Then you cut a deal with your wholesalers and head down that street, simple as that.

In a victory for the restaurant industry, New Jersey recently joined Oregon, Massachusetts and Nassau County, N.Y., in acknowledging that the new federal menu-labeling law preempts state and local mandates not identical to the federal standard.

Because of the new federal law, New Jersey officials notified the New Jersey Restaurant Association and others that the state will not implement state menu-labeling rules set to take effect Jan. 1.

The federal legislation specifically preempts all state and local laws not identical to federal rules governing calorie and other nutrition data-posting requirements on menus in covered chain restaurants.

Maine also gave strong indication this week that it will not enforce its state law due to take effect Feb. 1. The Maine Restaurant Association reports that the state is looking to bring its enforcement in line with the Food and Drug Administration's enforcement of the federal law. The FDA has not yet begun to enforce the federal law.

When First Lady Michelle Obama and the White House launched the Let's Move program in June, the Eat'n Park Hospitality Group decided to increase its commitment to promoting healthy lifestyles.

The Pittsburgh-based company had been working with local farmers since 2002 through its FarmSource program. The buy-local program allowed the company to serve fresh, seasonal produce. Eat'n Park also had been sending chefs to schools to teach children about nutrition.

"When we saw Let's Move, we said, 'We can hit those pillars,' " said Brooks Broadhurst, senior vice president, food and beverage.

Pocket change from Yard House patrons is funding National Restaurant Association Educational Foundation and California Restaurant Association Educational Foundation scholarship programs and ProStart.

The NRAEF and CRAEF are among the beneficiaries of Yard House's Round It Up America. Guests at the company's 28 locations contribute to the program by rounding their check totals to the nearest dollar. 

The Irvine, Calif.-based restaurant chain launched the fundraising initiative in July 2004. Since then, it has raised about $265,000. NRAEF and CRAEF each received $15,000 at an October ceremony.

ProStart students in Jones County, Miss., are developing more than culinary arts and hospitality management experience. They're also getting hands-on community service experience.

Each year, ProStart students at A.P. Fatherree Vocational Center in Laurel, Miss., help prepare Thanksgiving meals for elementary students and their parents.

The ProStart students spend an entire day working side by side with cafeteria workers in elementary schools to prepare and serve the traditional meals. They usually work in the elementary schools they attended.

Don Fertman drew on his performance experience when he donned a disguise and assumed identity to go undercover in Subway restaurants.

Fertman, chief development officer of the Milford, Conn.-based sandwich chain, is the latest restaurant executive to appear on the CBS series "Undercover Boss." The show airs at 9 p.m. ET Sunday. The 5,000-location quickservice company is a member of the National Restaurant Association.

Fertman, who is responsible for franchise development, stepped out of his daily routine during filming. He baked bread, stocked sandwich ingredients, sliced vegetables, took inventory and served customers as "John Wilson."

Dine out next Saturday to support local restaurateurs. You'll need to relax after Black Friday, and you'll be tired of leftover turkey sandwiches.

Saturday, Nov. 27, is Small Business Saturday, a campaign to encourage consumers to support locally owned restaurants, retailers and other independent operations. More than 90 percent of the nearly 500,000 restaurant locations in the United States are small businesses.

Small businesses have created 65 percent of new jobs in the past 20 years, and they bolster local economies. For every $100 spent in a locally owned, independent business, $68 returns to the community through taxes, payroll and other means.

High school students typically don't get paid to spend time on Twitter to further their education, but KFC thinks they should.

The restaurant chain, a member of the National Restaurant Association, is encouraging high school seniors to tweet for a chance to win a $20,000 college scholarship through the KFC Colonel's Scholars program.

In 140 characters (actually, 129 characters, since they have to include the #KFCScholar hashtag in the tweet), students should convey how they exemplify Colonel Sanders' commitment to education, enrich their communities and why they deserve a college scholarship, according to the company's news release.

Travelers pose an enticing target for green-minded restaurants, as travel spending is expected to reach nearly $795 billion next year. But how does a cafe in Peoria snag the attention of someone boarding a plane in Pittsburgh?

About 44 percent of consumers prefer to dine in restaurants with conservation programs, according to National Restaurant Association research. Reason suggests they follow those preferences on the road.

Indeed, eco-tourism is booming, and a proliferation of online green travel guides help travelers maintain their sustainable lifestyles. However, many of those guides don't include restaurants.

Yuriy and Olga Abramovich received American citizenship last year. But they achieved the American Dream in 2003 when they opened their own restaurant.

The owners of Olga's Fine Dining in Jackson, Miss., exemplify those who have achieved success through the restaurant industry. The National Restaurant Association recognizes restaurateurs such as the Abramoviches through its annual Faces of Diversity Awards. The NRA's American Dream Awards recognize operators who achieved their dreams through hard work and enterprise in the restaurant industry. Its Inspiration Award recognizes restaurant companies with oustanding inclusion and diversity initiatives.

Next year's awards will be announced in March at the Association's Public Affairs Conference. Applications and nominations can be submitted until Dec. 17.

As the holiday season approaches, many Americans feel the philanthropic spirit and look to volunteer or donate to charitable organizations.

Annual fundraising campaigns are ramping up, and charities are finding innovative and fun ways to involve their communities. As the cornerstone of communities nationwide, restaurants are no strangers to charitable activities. In fact, more than nine out 10 are involved in community service. The combined efforts of the nation's nearly one million restaurant and foodservice locations amount to almost $3 billion annually.

Culinary benefits have a natural tie to anti-hunger efforts, and non-profits are engaging the restaurant community in several ways. Just this week, Share Our Strength - a national organization that fights childhood hunger - conducted a Taste of the Nation event in Washington, D.C., that tied in the hottest restaurant industry trends around - food trucks and social media.

Giving thanks is part of next week's holiday tradition, and many Americans will include restaurants on their list of things to be thankful for when it comes to their celebratory meals.

According to National Restaurant Association research, more than half of consumers - 53 percent - use restaurant-prepared takeout items for all or part of their Thanksgiving Day meals. From complete holiday feasts and turkeys or hams to side dishes and desserts, Americans are incorporating ready-to-eat dishes into their Thanksgiving dinners.

Relying on restaurants to provide great-tasting, no-hassle holiday food allows them more quality time with family and friends and less time planning, shopping, cooking and cleaning up. Year-round, 78 percent of American adults say going to restaurants with family and friends is a better use of leisure time than cooking at home.

It's easier than ever to apply for a National Restaurant Association Educational Foundation scholarship.

The NRAEF has updated its 2011 scholarship website with new user-friendly features. The new features clearly spells out the application process so applicants know what's expected of them and what steps to take.

The redesigned site also makes it easier to understand which scholarships students are eligible for, depending on whether they are incoming freshmen or current undergraduates.

The National Restaurant Association will continue its 61-year tradition in Chicago.

Association representatives were joined today by Illinois Governor Pat Quinn, Chicago Mayor Richard M. Daley and leaders in Chicago's convention and hospitality industry in announcing that the annual National Restaurant Association Restaurant, Hotel-Motel Show and International Wine, Spirits & Beer Event will remain in Chicago's McCormick Place through 2016.

After thorough review of options, the National Restaurant Association signed a new five-year agreement with the Metropolitan Pier and Exposition Authority (MPEA) and the Chicago Convention & Tourism Bureau (CCTB).

"We continue to strongly believe that Chicago, Illinois, is a world-class destination that provides outstanding business facilities, along with sensational culinary, cultural and entertainment assets. Our 66,000 attendees and exhibitors from all 50 states and more than 100 countries deserve and expect excellence - and Chicago delivers," said Dawn Sweeney, National Restaurant Association President and CEO, at the press conference at McCormick Place today.

The Internal Revenue Service is ramping up efforts to collect employment taxes from employers based on tipped employees' reports of previously unreported tips, IRS officials said in a recent "IRS Live" session.

"Collecting Employer Taxes on Tips" is now available for viewing at www.irsvideos.gov/CollectingEmployerTaxesTips.

The session covered what the agency is doing to collect employers' share of employment taxes on tips that employees report on Form 4137, Social Security and Medicare Taxes on Unreported Tips. The webinar examined the purpose of Form 4137 and how the agency uses the form to determine employment taxes.

Agency officials also gave details about an IRS compliance project to determine employment taxes and what employers can expect if they are contacted under the project. The IRS last spring announced a campaign to increase its scrutiny of tip reporting in the restaurant industry.

The Justice Department recently proposed revisions to parts of the Americans with Disabilities Act. Learn about how the changes would affect places of public accommodation and the restaurant industry.

A new members-only webinar will cover how to apply the proposed element-by-element safe harbor rules; service animals; use of mobility devices; employee-only circulation paths; and requirements for accessible-dining locations. Join us to discover best practices for navigating the changes. Sign up here; you'll need your member number to register.

The National Restaurant Association joined other business groups Nov. 12 in objecting to a proposal from the Department of Labor that would dramatically change the way the agency sets wage thresholds for the H-2B visa program.

The H-2B program provides 66,000 annual visas for short-term international employees when U.S. businesses can't find enough domestic employees. Many restaurants use the program to hire temporary staff during peak tourism months.

"DOL's proposed rule would significantly increase costs for seasonal small businsses and could lead to a decrease in both H-2B and American employment in those companies," the NRA and other groups told the Labor Department in Nov. 12 comments. The H-2B Workforce Coalition, which represents hundreds of thousands of U.S. employers who depend on H-2B visas, submitted the comments.  

Nutrition-analysis services can benefit more than chain restaurants required to comply with the federal nutrition-disclosure standard, according to a National Restaurant Association webinar.

The services can help smaller chains that choose to disclose the same nutrition data as those affected by the law. The services also can help independent operators responding to increased consumer demand for nutrition information.

The nutrition standard, part of the health care reform law enacted in March, affects restaurants with at least 20 locations operating under the same name. Those restaurants must disclose specific nutrition information on menus and menu boards. The federal law supersedes state and local menu-labeling regulations.

Restaurants don't have to give away the farm to feature foods from sustainable sources.

Supplies from eco-minded farmers and fisherman often cost more than food restaurants buy from large-scale providers. Many operators say that's why they're sitting out the sustainability trend; they're convinced they can't afford to join it.

Some chefs have discovered how to counterbalance the expense and keep their profits as sustainable as their fare. The Chefs Collaborative, a Boston-based network of culinary professionals devoted to local and sustainable sourcing, says its members have identified a number of ways to keep food costs under 32 percent.

International visitors spent 10 percent more on travel to the United States and tourism activities within the U.S. than they did a year ago, according to the Commerce Department. That's good news for U.S. restaurants.

International visitors spent an estimated $76.7 billion on travel to, and tourism-related activities within, the United States during the first seven months of 2010, a hefty 10 percent more than in the same period in 2009. July marked the seventh consecutive month of spending growth by international visitors.

Tourism spending is an important component and driver of restaurant sales growth. National Restaurant Association research shows that tourists are responsible for anywhere from 15 percent to 40 percent of restaurant sales, depending on the type of restaurant business.

National Restaurant Association Vice Chair Sally Smith recently addressed the Iowa Restaurant Association at its Celebrating Excellence Culinary Arts Gala and annual board meeting.

At the meeting, Smith noted that the NRA looked forward to working with the new Congress in January to advance its strategic goals and create a more restaurant-friendly business environment. The Association also continues to work on major regulatory issues where the Association can have a measurable impact on behalf of its members, she said. She noted multiple comments the Association has filed with federal agencies on proposed regulations and its work with other business groups to fight restrictive rules and complex paperwork mandates.

The Association also is focused on improving the restaurant industry's image, she said. "Too often, the good work of our industry and the opportunities we offer are relegated to a back seat. We need to raise awareness that we are an industry of opportunity and an industry that gives back."

Smith, CEO of Buffalo Wild Wings, becomes chair of the National Restaurant Association in January.

In his latest "Economist's Notebook," Bruce Grindy discusses widely divergent trends in state economies. As former Speaker of the House Tip O'Neill said, "All politics is local," the same often can be true about the economy. "Economist's Notebook" is a bi-monthly analysis of restaurant industry-related research. Grindy is the National Restaurant Association's chief economist.

Nationally, the unemployment rate remains excessively high at 9.6 percent. October tied the post-World War II record for the most consecutive months above 9 percent:18 months and counting. However, economic woes are not distributed evenly across the country, with state jobless rates varying widely. 

Some state economies are in comparatively good positions because of the strength and diversity of their export industries, or those that bring in money from outside the state. Case in point: North Dakota had a 3.7 percent unemployment rate -- by far the lowest in the country -- thanks to its thriving oil and gas industry and healthy tourism and agriculture sectors. South Dakota and Nebraska also registered jobless rates below 5 percent in September. 

In contrast, states hit hardest by the housing market crash, including Nevada, Michigan, California and Florida, have unemployment rates well above 10 percent.

The restaurant industry has suffered through a tough period in the past three years, but trends are pointing in the right direction for recovery, albeit a slow one, Hudson Riehle, the National Restaurant Association's senior vice president of research and knowledge, told Rhode Island restaurant and tourism professionals last week.

Riehle spoke Nov. 4 to restaurateurs, hoteliers and other hospitality industry insiders at a breakfast sponsored by the Rhode Island Hospitality Association in Providence, R.I., sharing insights on the national and state industry outlook.

The Providence Journal reported that Riehle said pent-up demand for restaurants among consumer increased from 31 percent in October 2007 to 41 percent in April 2010. The Providence Business News quoted Riehle as saying the state of restaurant business in Rhode Island is on par with national trends and is "definitely getting better."

The National Restaurant Association submitted comments to the Internal Revenue Service last week encouraging the agency to delay sections of the health care law reform law that apply new non-discrimination penalties to fully insured health plans. We urged the IRS to hold off on penalties until at least 2014, when other reforms are in place. We also asked that penalties apply evenly to self- and fully insured plans, and asked the IRS for guidance on its definition of part-time and seasonal employees for purposes of nondiscrimination rules. Read the comments.

Bobby Schilling is trading customer service for public service.

The Moline, Ill., restaurateur will be among the freshmen class of the 112th Congress in January. Schilling, owner of Saint Giuseppe's Heavenly Pizza, will represent Illinois' 17th Congressional District. A Republican, he captured 53 percent of the vote to defeat his Democratic opponent. He's among a key group of lawmakers the National Restaurant Association Political Action Committee supported in the mid-term elections.

"I'm taking a break from my regular life to serve the people of the 17th District," Schilling says. He says he plans to return to his 65-seat restaurant after serving two or three terms in Congress - if re-elected.

A proposed federal regulation could make it harder for post-secondary schools to offer culinary arts programs, the National Restaurant Association told the Department of Education today. Read more about the hearing.

Trends, challenges, technologies and best-practices are constantly evolving in the restaurant industry, so restaurant operators need to keep their finger on the pulse of business opportunities now and into the future.

Every year, the National Restaurant Association Restaurant, Hotel-Motel Show and International Wine, Spirits & Beer Event gather top-shelf industry leaders and trendsetters to present new ideas, insights and techniques to help operators.

The National Restaurant Association continues to seek proposals from individuals and organizations from around the U.S. and world.

NRA Show proposals may be submitted for a single speaker or as interactive panel discussions. Companies exhibiting at NRA Show 2011 are not eligible to present in the categories of jobs/careers, profitability/entrepreneurship, food/healthy living, or sustainability. In the technology category, sessions must be in panel discussion form and be presented by 2011 technology exhibitors, focusing on the foodservice operator perspective.

IWSB education session proposals may be submitted by operators, associations, consultants and beverage alcohol industry experts as a single speaker or a panel discussion, but must focus on trends, marketing, responsible service, profitability and business solutions specific to beverage alcohol and bar programs.

Reposted from Floored! The Official Blog of the NRA Show and IWSB Event.

Two beverage-alcohol industry heavyweights will address attendees at the 2011 International Wine, Spirits & Beer Event (IWSB) and National Restaurant Association Restaurant, Hotel-Motel Show in Chicago in May. Opening sessions of IWSB will feature author and Windows on the World Wine School founder Kevin Zraly, and Samuel Adams brewer and craft beer guru Jim Koch.

Kevin Zraly's World View of Wines to Serve Your Patrons will be held on Sunday, May 22, at 10 a.m. His book, Windows on the World Complete Wine Course, is the number-one selling wine book in the world with over 3 million copies sold. Zraly was wine director at the Windows on the World Restaurant from 1976 - 2001. He is the founder and teacher of the Windows on the World Wine School that has graduated almost 20,000 students.

Jim Koch's session The American Craft Beer Revolution will tell the story of the craft beer revolution and its impact on the expansion of high-quality craft beer in restaurants across America. The session will be held on Monday, May 23, at 10 a.m. A Harvard graduate, Koch first brewed Samuel Adams Boston Lager in his kitchen using an old family recipe and quickly grew the brand in the Boston area and beyond. Koch is the founder of The Boston Beer Company.

Winter doesn't have to end restaurants' use of area specialties. With the growing season coming to an end in most sections of the country, many chefs are looking for ways to continue offering locally produced food.

Although you won't find field-grown lettuce or other green produce, you can offer other local food throughout the year, says Maisie Greenawalt of Bon Appetit Management, which operates of 400 cafes in colleges, office buildings and other non-traditional locations. The Palo Alto, Calif.-based company requires all its feeding operations to feature local foods as a matter of course.

"In 99 percent of the country, we can offer local choices year-round," she says. It's a matter of looking beyond the vegetables or fruits that many restaurants equate with buying locally, particularly if the operator is new to the trend.

A key group of candidates supported by the National Restaurant Association Political Action Committee overwhelmingly won their elections Tuesday.

The NRA-PAC was involved in many races over the course of the mid-term elections, including those of long-time supporters of the industry and new candidates in safe seats.

In the most competitive races, the NRA-PAC supported 16 candidates in the Senate and 60 in the House. These "Win 2010" candidates are expected to support a pro-restaurant, business and free enterprise agenda in the 112th Congress.

The state's public health division recently announced that the Oregon Health Authority will not implement or enforce the statewide menu-labeling law set to take effect Jan. 1, 2011. The Oregon Restaurant and Lodging Association said the announcement was great news for its members who were worried about having to comply with the state menu-labeling law as well as the federal nutrition disclosure standard. The two laws differ.

The ORLA says Oregon restaurateurs might have to continue to provide nutrition information upon request under the first phase of the state law. The state also might move forward with requirements for restaurants not subject to the federal nutrition disclosure law.

Massachusetts and Nassau Co., N.Y. also have recognized the federal law supersedes state menu-labeling laws. The National Restaurant Association continues to work with restaurant associations in other states where the governments haven't recognized the federal preemption.

The National Restaurant Association took its fight to the courts yesterday to support the primacy of the secret ballot in union organizing campaigns.

The NRA filed two legal briefs with the National Labor Relations Board urging the primacy of the secret ballot. We joined nearly 250 other national, state and local business groups in an amicus brief filed through the Coalition for a Democratic Workplace. The NRA is on the CDW's steering committee. A number of state restaurant associations signed the brief also.

We also filed separate and more specific comments through an amici curiae brief with several other associations to ensure that our industry's specific concerns are raised.

The National Restaurant Association launched a new version of ServSafe Starters to help California food handlers comply with a new law.

The state's food handler training law, enacted Sept. 25, requires prospective restaurant employees to show proof of food-safety training beginning July 1, 2011. The law will allow prospective restaurant employees to show their ServSafe Starters California food handler cards to prove they've undergone appripriate training.

The NRA Oct. 29 released the ServsSafe Starters California food handler training course and exam. The law is designed to ensure all restaurant employees receive a reasonable level of food safety training to reduce the potential for foodborne illness.

After months of debate, the highly anticipated 2010 mid-term elections are upon us.

With more than 80 federal races in play, control of the House of Representatives and Senate is up for grabs. As you watch the election results come in Tuesday, follow two restaurateurs running for Congress.

Restaurant owner/operator Bobby Schilling (R) looks to capture Illinois' 17th congressional seat from Democrat incumbent Rep. Phil Hare. Schilling and his family own Giuseppe's Heavenly Pizza in Moline.

Employers are waiting for guidance from the Treasury Department on how much to withhold in federal taxes from employees' paychecks in 2011.

Guidance on federal tax withholding typically comes in mid-November in order to give payroll processors enough time to adjust paycheck systems by Jan. 1. However, withholding tables are likely to be late this year because Congress has not decided whether to extend tax-rate reductions from 2001 that expire this year.

If the Treasury Department issues withholding tables based on the assumption that Congress won't extend the expiring tax cuts, millions of employees will see their tax rates and corresponding federal withholding amounts go up starting Jan. 1. If the agency issues no advice, small and large employers alike will be in the difficult position of not knowing how to calculate worker paychecks for 2011 -- or failing to withhold enough money, which means employees could get stuck with bigger tax bills later.

The 111th Congress comes back into a lame-duck session Nov. 15. The Wall Street Journal last month discussed the dilemma employers and employees face on withholding amounts if Congress fails to act on the tax-cut issue.