4 ms·
One thing I don't see talked about enough is the perception that reporting tips is optional. Governments know people underreport tips and still want their fair
by SeanAnderson 4y ago
One thing I don't see talked about enough is the perception that reporting tips is optional.
Governments know people underreport tips and still want their fair cut. A previous roommate of mine worked as a server where he was required to say he was getting at least 8% in tips on every order because it looks suspicious if that doesn't occur. So, in scenarios where a customer opts not to tip, it was actually costing money.
If the expected value of tipping continues to rise then I have to assume these expectations will also rise which is only going to spite those receiving tips even further.
I know my experience here is anecdotal. I'm curious if others in the industry have been given similar ultimatums from their places of employment.
- Tool_of_Society 4y agoYes it's generally assumed that you're making at least a percentage of the sale as a tip. Most of the bigger employers automatically report your CC tips and an assumed percentage of cash tips. "unusually" low tips reported could result in the IRS taking a look at you. Some time ago I remember working a job where it didn't matter if you only made 5% tips over all they still reported to the IRS that you made 15%. You will see this often in areas where the hourly pay is below minimum wage. The employer will state you made up the difference in tips thus they are allowed to pay you less than minimum wage.
- Atheros 4y ago> in scenarios where a customer opts not to tip, it was actually costing money. More accurately, where a customer opts not to tip, the server isn't able to commit as much tax fraud.
- LightHugger 4y agoMore accurately, the employer is able to pay the employee further below minimum wage.
- deleted 4y ago[deleted]