3 ms·
The server should pay tax on the tip. If I understand correctly, tips now go to the server, but the restaurant owes tax on the tip. So the more the server make
by navane 8y ago
The server should pay tax on the tip.
If I understand correctly, tips now go to the server, but the restaurant owes tax on the tip. So the more the server makes in tips, the more the restaurant owes in tax. Therefore the server should deduct the tax from the tip before they take it home, and leave that deduction to the restaurant, who can then give it to the tax authority.
- mcv 8y agoI really hope that's not how it works. It would mean that a restaurant would get punished instead of rewarded for getting a big tip. There's basically two options: either the tip belongs to the restaurant and they can use the tip to pay for any taxes over the tip, and possible spread it out among their employees, or the tip goes directly from the customer to the server and the restaurant has nothing to do with it.
- deleted 8y ago[deleted]
- kayfox 8y agoUh, the server pays income tax and social security withholding on the tip, as long as tips are reported properly.