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What does whether it's taxed or not have to do with it? (By the way, if the customer pays with credit card, that tip will most likely be taxed.) If your automo
by bitshiftfaced 5y ago
What does whether it's taxed or not have to do with it? (By the way, if the customer pays with credit card, that tip will most likely be taxed.)
If your automotive repair shop changed a line on their receipt from "20% service fee" to "20% obligatory tip which will be deducted from employee's pay check," it would work the same way.
- underseacables 5y agoI think you might be looking at this from the wrong direction, if I may. If you pay with your meal and put a tip on your credit card, you are taxed. When the server claims their tips at the end of the evening, those tips are than taxed. Those are two different things.
- bitshiftfaced 5y agoI was referring to the practice of restaurants not reporting income from cash tips but usually doing so for tips using credit cards, since an auditor can "see" that income.