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Maybe naive question, but I haven't seen anything about the taxation on tips. From the little I understand of the US taxation, tips are in theory subject to ta
by jaclaz 3y ago
Maybe naive question, but I haven't seen anything about the taxation on tips.
From the little I understand of the US taxation, tips are in theory subject to taxes but in practice many (most?) low wage workers omit to declare them?
- ghaff 3y agoHistorically that was probably true but I assume the vast majority of tips these days are on credit cards.
- UncleEntity 3y agoThere’s some sort of formula the IRS has for a percentage of income you need to claim in tips to keep them happy. Probably isn’t as important anymore than in the 90s when I was living with a waitress who I learned this stuff from who got almost all her tip money in cash, credit card tips get reported on the payslips. As an aside, I used to watch in pure wonderment when she would do laundry or need money for something and go through her dirty clothes easily pulling a couple hundred dollars out of pockets.
- jaclaz 3y agoI hadn't thought of tips with credit/debit cards or other electronic payments, so they go to the bar/restaurant that then (when the actual money arrives in the bank) gives them back to the waiter(s), it must be some serious complication in accounting.