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Along those same lines if I'm going out to eat somewhere that accepts credit cards I will almost always pay the bill with the card and tip the server in cash. T
by iamatworknow 9y ago
Along those same lines if I'm going out to eat somewhere that accepts credit cards I will almost always pay the bill with the card and tip the server in cash. They can just pocket the cash and as far as the restaurant knows they didn't receive a tip (that would otherwise be taxed).
- logfromblammo 9y agoIf you don't add a tip to the credit receipt, the IRS will estimate a tip value for tax purposes. I don't know the exact amount, but I think it's around 10%. If you are intent upon helping service staff evade taxes, the optimal strategy would therefore be to put 10% on the receipt and drop the remainder on the table in cash. This also means that if you stiff your server and leave no tip, they are still getting taxed as though you left 10%. If you really want to be a jerk, be slightly less of a jerk by leaving a $0.01 tip on the receipt. This will also allow them to post it to outrage-fueled social media for a tiny bit of temporary fame. Most people aren't that invested into stigginit to da Man, or at least not just via their restaurant tips. You'd be better off paying cash for everything, no-receipt requested, and not involving the electronic point-of-sale till at all.
- lotsofpulp 9y agoWhy do you think restaurant servers shouldn't pay taxes? Are there any other occupations for which you believe should be exempt from taxes?