And tips are normally reported as a percentage of gross sales. Technically you can report less, but thats a good way to get catch a tax audit, and if the total tips reported from the restaurant fall too low the whole place will be audited. If your actual tips are short for the day the standard practice is to report the normal percentage and eat the loss.
No, that is not normal practice. If you do that, you aren’t just eating the loss of what your employer should have paid you, you would be paying taxes on money you didn’t make.
I had a manager at a bar try to feed me that line after a very slow shift and I refused. Anyone pushing that as standard practice either has been direly mislead, or is screwing you over for the company’s profit.
Wow, for real? This is a good argument in support of abolishing tipped wages. Is there anything you can point to for that being standard practice so my source isn’t just an internet person? It’s clearly not going to be written down anywhere, so I’m looking for an article or written testimony and not finding anything
That does not say over report your tips to the IRS if tips are so low they would have forced your employer to pay a higher wage.
I could see making that judgement call if the employer is a dick but customers are usually exceptionally generous tip wise, and you had an isolated slow night. However if day to day the tips are normal, then taking the hit for your employer is just a recipe for continued exploitation.
Not it doesnt say to over report your tips, but it does say that if you or your employer report under a certain percent of sales as tips, exactly what percentage they wont say, that theyll audit you, and that that percentage is at least 8%.
And tips are normally reported as a percentage of gross sales. Technically you can report less, but thats a good way to get catch a tax audit, and if the total tips reported from the restaurant fall too low the whole place will be audited. If your actual tips are short for the day the standard practice is to report the normal percentage and eat the loss.
No, that is not normal practice. If you do that, you aren’t just eating the loss of what your employer should have paid you, you would be paying taxes on money you didn’t make.
I had a manager at a bar try to feed me that line after a very slow shift and I refused. Anyone pushing that as standard practice either has been direly mislead, or is screwing you over for the company’s profit.
Wow, for real? This is a good argument in support of abolishing tipped wages. Is there anything you can point to for that being standard practice so my source isn’t just an internet person? It’s clearly not going to be written down anywhere, so I’m looking for an article or written testimony and not finding anything
https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting
That does not say over report your tips to the IRS if tips are so low they would have forced your employer to pay a higher wage.
I could see making that judgement call if the employer is a dick but customers are usually exceptionally generous tip wise, and you had an isolated slow night. However if day to day the tips are normal, then taking the hit for your employer is just a recipe for continued exploitation.
Not it doesnt say to over report your tips, but it does say that if you or your employer report under a certain percent of sales as tips, exactly what percentage they wont say, that theyll audit you, and that that percentage is at least 8%.