I have worked for many restaurants that say to claim 8-10% of sales or credit card tips. I recently started at a small independently owned restaurant and they told me I have to claim all of my tips. Well of course I didn't and the owner told me if I wasn't claiming all my cash that I couldn't work there. About 90-95% of all my sales are credit card and I am always way over 8-10% of my sales. My last two checks were void and 0.25 cents. I don't want to owe money at the end of the year because I am not making enough hourly to cover my taxes. Any suggestions on how to claim less and not get in trouble with my boss?
2007-02-27 14:54:55 · 2 answers · asked by Janielle M 2 in Business & Finance ➔ Careers & Employment
What makes me different that I don't have to claim all of my tips? I make 3.83 an hour that's what makes me different. I also have been told that the restaurant has to claim 8% of sales in tips and the owner doesn't want to pay taxes out of her own pocket and makes the employees pay.
2007-02-27 15:18:57 · update #1
If your sales are on credit card, then you claim the tips that are on there. For the cash sales, claim 15%. It can't be that much money. Then show your employer how you are taking care to follow their instructions. I can't believe they would have a problem with that. They probably got stung on taxes before and are very careful.
2007-02-27 15:00:15 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Your employer is covering his @$$ as he does not want to run afoul of IRS mandates just so you can take home a few extra bucks. If it's on a credit card, 100% of said tips must be reported. For cash, the IRS says 9% or 10% of the gross, I forget which. Seriously, nobody, least of all myself, want to pay taxes. I personally feel that the government... well, that would be beyond the scope of your question. The rest of us pay income taxes on what we take home, what makes you any different?
2007-02-27 15:05:37 · answer #2 · answered by trentrockport 5 · 0⤊ 2⤋