Would I have to set aside money out of my tips?
2006-10-09 16:49:05 · 6 answers · asked by toolgirl_75023 3 in Business & Finance ➔ Careers & Employment
If your tips are reported as income by your employer, taxes will be withheld to take care of it. If your employer doesn't ask, you have no tips. Some good hearted employers will ask and only report part of your tips to meet their responsibility in reporting and you have more income as a result.
Best ask your employer how they handle this, so no misunderstandings occur.
2006-10-09 16:53:09 · answer #1 · answered by eferrell01 7 · 0⤊ 0⤋
The only reason that waitresses are paid an hourly sum is precisely to cover their taxes.
2006-10-09 16:52:23 · answer #2 · answered by Anonymous · 1⤊ 0⤋
To pay your estimated tax, you use IRS Form 1040-ES, Estimated Tax for Individuals. Estimated taxes are paid when no or not enough money is not withheld from income. This includes income from self-employment, unemployment compensation, alimony, interest and prizes.
2006-10-09 16:51:38 · answer #3 · answered by Diamond in the Rough 6 · 3⤊ 1⤋
when i was waitressing we just had to fill out a tip report once a month..and they took it out of our wages. but you should probrobly ask your employer how it works
2006-10-09 16:52:59 · answer #4 · answered by kimmykay 3 · 0⤊ 0⤋
you have to claim your tips which the govt considers to be taxable income. Of course, you can always lowball the figure so you pay less taxes.
2006-10-09 16:50:51 · answer #5 · answered by mrbadmood 4 · 2⤊ 1⤋
Not if you're smart.
2006-10-09 16:56:52 · answer #6 · answered by Anonymous · 0⤊ 0⤋