This is more important for tips. If you pay a tip by card, the tipped worker will have to declare the full value of the tip as income. If you pay by cash, they

This is more important for tips. If you pay a tip by card, the tipped worker will have to declare the full value of the tip as income. If you pay by cash, they are supposed to declare the full value of the tip as income, but what's actually reported by the business to the IRS is 15% of sales. Any cash tips over that amount you can probably get away with not reporting.