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>Not to mention servers collect most of that tax free when they shouldn’t. I believe servers get taxed at a certain rate regardless of if they actually make th
by Clubber 5y ago
>Not to mention servers collect most of that tax free when they shouldn’t.
I believe servers get taxed at a certain rate regardless of if they actually make the tip. It's assumed they will make $x in tips so they are taxed for $x regardless of if they made that or not. They get hosed on both sides (employers and government).
- willcipriano 5y agoI worked in the restaurant industry for a decade. People like to point to waitstaff having it rough but on a typical night they take home considerably more than the back of the house as well as pay little to no tax on cash tips. There is no special tax that I'm aware of to prevent that tax evasion.
- enominezerum 5y agoIn an area where basic retail wages ~$10/hr with some experience, my no wife with no experience was netting $15-20+/hr after tips. This is despite her scumbag employer making her work an hour before and after service prepping and cleaning the dining area. I was working 2x 20hr/week jobs and making less than her working a Fri/Sat/Sun..
- IntrepidWorm 5y agoYup! My family owns a restaurant, and I can confirm this is true in my area (northeast US). My sister worked as a server for a summer (2017, or thereabouts), and averaged about $46 an hour. Not to put too fine a point on it, but it helped that she was young, attractive, and witty. When I served, I made about $30 per hour (not-unattractive male). Sex sells, as she used to quip- it's true, there's also a gender-based component to it. Anyway, most of that in principle was cash tips. She was young enough where she was getting all of her tax back anyway, but I do know many people who underreport the tips they receive.