And tips are normally reported as a percentage of gross sales. Technically you can report less, but thats a good way to get catch a tax audit, and if the total tips reported from the restaurant fall too low the whole place will be audited. If your actual tips are short for the day the standard practice is to report the normal percentage and eat the loss.
No, that is not normal practice. If you do that, you aren’t just eating the loss of what your employer should have paid you, you would be paying taxes on money you didn’t make.
I had a manager at a bar try to feed me that line after a very slow shift and I refused. Anyone pushing that as standard practice either has been direly mislead, or is screwing you over for the company’s profit.
Wow, for real? This is a good argument in support of abolishing tipped wages. Is there anything you can point to for that being standard practice so my source isn’t just an internet person? It’s clearly not going to be written down anywhere, so I’m looking for an article or written testimony and not finding anything
Note that if a worker fails to get to minimum wage through tips, they are owed minimum wage by the employer.
However, minimum wage is pretty crap.
Your point stands that compensation should be baked in of course, it is just that normal minimum wage does kick in if the tips fail.
And tips are normally reported as a percentage of gross sales. Technically you can report less, but thats a good way to get catch a tax audit, and if the total tips reported from the restaurant fall too low the whole place will be audited. If your actual tips are short for the day the standard practice is to report the normal percentage and eat the loss.
No, that is not normal practice. If you do that, you aren’t just eating the loss of what your employer should have paid you, you would be paying taxes on money you didn’t make.
I had a manager at a bar try to feed me that line after a very slow shift and I refused. Anyone pushing that as standard practice either has been direly mislead, or is screwing you over for the company’s profit.
Wow, for real? This is a good argument in support of abolishing tipped wages. Is there anything you can point to for that being standard practice so my source isn’t just an internet person? It’s clearly not going to be written down anywhere, so I’m looking for an article or written testimony and not finding anything
https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting