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Do you know this from actual personal experience, or just because it seems obvious that the data is there and that it would be trivial to automate? The employe
by NovemberWhiskey 3y ago
Do you know this from actual personal experience, or just because it seems obvious that the data is there and that it would be trivial to automate?
The employer doesn't really have any incentive, as it's the employee's responsibility to report their tips.
There are lots of places that will tip out servers in cash for card receipts and rely on reporting - of course, yes, the servers have to report it but all the incentives to do the right thing are missing on both sides.
- seanmcdirmid 3y agoMy sister worked as a waitress. Credit card tips were delivered to her on her paycheck minus credit card processing fees. I've never heard of a restaurant that would tip out cash for credit card transactions the same day. Now if they did do that, they might have to report those tips that it cashes out on the worker’s W2 along with the employees reported tips I think it is even more obvious for gig workers whose income are reported via 1099s and their tips are collected by a third party. I'm pretty sure Uber must report tips as general income. Now, it is possible for the rider to give a tip to their Uber driver directly as cash, and that wouldn't be necessarily reported (or to tip their delivery person directly rather than via app).