2006-08-22 16:22:27 · 10 answers · asked by txjanielee 1 in Business & Finance ➔ Careers & Employment
TIPS ARE CONSIDERED A TYPE OF COMMISSION. SO UNLESS THEY KNOW EXACTLY HOW MUCH YOU HAVE MADE, THEY SHOULD NOT BE TAXING. FOR INSTANCE; IF YOU RECEIVE A TIP AS PART OF A BILL AND THE BOOKKEEPERS CAN CALCULATE THAT THEN YOU WOULD BE TAXED. BUT IF YOU RECEIVE A CASH TIP, THEN NO YOU DO NOT NEED TO BE TAXED ON THIS. YOU NEED TO CONTACT YOU LOCAL BETTER BUSINESS BUREAU AND MAKE SURE WHAT COMMISSION TYPES ARE TAXABLE IN YOUR AREA. EACH CITY IS DIFFERENT BASED ON STATE LAWS.
2006-08-22 16:31:47 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Hi, I admit I have worked in the restaurant business for a few years, but when I was a waitress the law was that we were taxed 8% of our total sales for the pay period minus the local tax. That is a federal law that when into effect back in the 1980's. You can go to the IRS website and found out exactly what the law of today is. I think actually that I just read on there that it is still that. In other fields that receive tips I don't know how they work it.
2006-08-22 17:30:54 · answer #2 · answered by arthurbel33 4 · 0⤊ 0⤋
your corporation isn't tax exempt. he's working a US commerce or corporation that has earnings effectively related to the U. S.. this means that he would be taxed on that earnings as will you. you're able to record the information as earnings to the IRS. the tactic for doing that's to fill out the self-reporting slips that the corporation is meant to furnish you. The corp will come upon problems with the IRS if it discouraging the IRS's number of sales. the clarification referred to that that's a kin owned corporation ability no longer something. One guy or woman, 5 persons, 500 million guy or woman corp, appropriate or no longer, will owe US tax in that project and this proprietor isn't an exception. i think you question is how do you pay tax now fairly of later, besides the shown fact that that's fairly greater advantageous to pay the tax later if obtainable via time fee of money. you're able to "guestimate" the quantity of tax owed, and placed that money right into a low priced fees account, then pay the tax on the tip of the three hundred and sixty 5 days and you have earned interest. don't be afraid to ask the IRS the two. they are able to truly be friendly and informative.
2016-11-05 10:25:47 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Not only is it customary it is the law that you report tips to your employer so that they can be taxed from your regular paycheck
2006-08-22 16:29:18 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Not only customary, it's required by law. You have to report income earned to the IRS, wages, tips, etc. If your company doesn't report, then they and you get in big trouble.
2006-08-22 20:35:37 · answer #5 · answered by Freddie 3 · 0⤊ 0⤋
No, unless they know what your tips are, or they actually include your tip in the bill.
Then the answer is yes.
For cash tips, they can't tell how much you made.
2006-08-22 16:25:56 · answer #6 · answered by Anonymous · 0⤊ 0⤋
It may not be the cutom, but by law, they are supposed to. From what I understand more and more employers are starting to do it.
2006-08-22 16:26:41 · answer #7 · answered by iggwad ™ 5 · 0⤊ 0⤋
yes, they're required to with hold taxes on it (and you're required to pay taxes on it) just like your salary.
2006-08-22 16:29:06 · answer #8 · answered by The Man 5 · 0⤊ 0⤋
Never heard of that. That sounds pretty weird.
2006-08-22 16:24:22 · answer #9 · answered by ? 6 · 0⤊ 1⤋
yes it is still part of ur pay
2006-08-22 16:31:08 · answer #10 · answered by big_daddy_don7 2 · 0⤊ 0⤋