In New York hospitality employers can take a tip credit reduction to the legal minimum wage. Effectively paying 10.65 as wage provided the employee earns effect

In New York hospitality employers can take a tip credit reduction to the legal minimum wage. Effectively paying 10.65 as wage provided the employee earns effectively more than the 15 minimum wage with tips included. Employees pay income taxes on reported tips. When tips are paid in cash, employers sometimes require employees to turn in these tips for distribution on their paychecks. Tips are of course paid via paychecks when tips are paid by credit card. Finally, employers can claim a business income credit for the taxes paid on employee tips. (I work in hospitality services) https://dol.ny.gov/minimum-wage-tipped-workers https://dol.ny.gov/minimum-wage-tipped-workers https://www.irs.gov/businesses/small-businesses-self-employed/fica-tip-credit-for-employers https://www.irs.gov/businesses/small-businesses-self-employe...