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> most workers do not fully report all of their tips, which saves them both income and payroll taxes I wonder what percentage of tips are still cash tips, whic
by _delirium 5y ago
> most workers do not fully report all of their tips, which saves them both income and payroll taxes
I wonder what percentage of tips are still cash tips, which is the only case where you can get away with that. I imagine the percentage of tips that are on a credit card (or even app like Doordash/Seamless) vs. cash has been increasing over time, but I can't find solid numbers.
- nickff 5y agoMost credit and debit card tips are paid out to servers with cash from the register at the end of the day. The amount of the tips is recorded, but the recipients are not, and taxes are not assessed against the tips. Technically, servers are supposed to declare the cash they receive as income, but it is accepted practice not to do so.
- deleted 5y ago[deleted]
- greedo 5y agoI'm not sure about that. It's been thirty years since I waited tables, but our restaurant required us to turn in tips (they were pooled and distributed to everyone who worked that shift). The withheld taxes on them, and if we skimmed tips and didn't turn them into the pool at the end of our shift, we'd get ratted out by coworkers and fired.