or do the taxes get deducted from your paychecks? like when you claim your tips after your shift is over, im assuming they figure that amount and deduct the necessary taxes when you get paid, but im not sure
2006-12-15 07:37:16 · 5 answers · asked by Lakini926 1 in Business & Finance ➔ Taxes ➔ United States
If you are reporting tips to your employer than they are required to withhold Federal Income Tax on the tips you report.
Large food or beverage establishments are required to keep records and verify the tips reported by the employees. If the percentage of tips reported by an employee falls below a required minimum of percentage of gross sales the employer is required to allocate an additional amount as tips to that employee.
Allocated tips have not had federal income tax taken out so it is important that you keep track of the amount you are reporting to substantiate a smaller amount if needed. (reported on line 8 of W-2)
2006-12-15 07:59:29 · answer #1 · answered by T D 2 · 1⤊ 0⤋
By law you must declare your tips as income on your yearly income tax. Some states are now actually taking a percentage of your wages to pay taxes on the tips they think you make!
2006-12-15 07:41:02 · answer #2 · answered by luckyaz128 6 · 0⤊ 0⤋
where I work (waitress) we make waitress wages $2.60hr and we figure our (reported) tips to the regular min. wage.(6.??). ex.. 5hrs x $3.?? hr., record that amount and other tips are unrecorded. it proberbly depends on where u work. ask a co-worker that has been there longer
2006-12-15 08:10:16 · answer #3 · answered by sdwhippie 1 · 0⤊ 1⤋
You'd have to ask your employer. Some might not.
They are supposed to.
2006-12-15 07:40:22 · answer #4 · answered by Phoenix, Wise Guru 7 · 0⤊ 0⤋
Your "suppose" to claim them as income..
2006-12-15 07:39:16 · answer #5 · answered by Allen L 4 · 0⤊ 0⤋