our restaurant has started inforcing the 100% of tips, but the waitress/waiters are wondering why they even clock in to work, when the paycheck is always 0.00. Does claiming all mean you get it back at end of year. I've been waitressing for along time and have never had to pay in.
2006-07-17 13:24:33 · 2 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
Claiming tips you mean you really are suppose to do that. Well I guess shame on me. I would never claim all of it. Then what am I going to bring home at the end of the week. If your not getting paid anything but tips then you need a new job. Sorry honey your boss doesn't want you to make a living. Good luck!
2006-07-17 13:29:38 · answer #1 · answered by Justbeingme 3 · 0⤊ 0⤋
unless the irs has changed the rule, 100% of tips are taxable. the employer is NOT supposed to hold out anything except as is shown on the paystub, not on the tips. tips are the responsibility of the one receiving tips and may or may not be equal to what the register reciepts are. many waitstaff do not get the full 15% of the bill as is the normal tip standard. some may get as little as 5 or 6% of the registered amount for that person. call a cpa for info on what is being done and whether it is proper. as best i remember, the irs was inundated with calls when this was first started and many resturants were giving waitstaff nothing because they were doing withholding as you described when that was not what the intent of the rules were. they were to track daily tips per worker, but not do any withholding other than what the time clock pay was.
2006-07-17 13:41:16 · answer #2 · answered by de bossy one 6 · 0⤊ 0⤋