Tipping

[tower912]

That would explain a lot.



I assume you mean your pets' vet?  How extensive is the menagerie?

[MuggsyB]

That would explain a lot.



I assume you mean your pets' vet?  How extensive is the menagerie?

Lol.

[Lennys Tap]

If the income tax on tips is actually eliminated, everyone will want to be paid in tips.

If the income tax on tips is actually eliminated, a whole lot of cheapskates will reduce the amount they tip accordingly.

[SoCalEagle]

What gets me is that most restaurants hand me an electronic bill that has options for 18%, 20%, and 22% tips.  Not bad you say, just choose the 18%, maybe more if I received very good or excellent service.  Well, these amounts are for the entire bill, INCLUDING TAX, not just the food and drink.  You expect me to tip on taxes?  Insanity.

[Hards Alumni]

If the income tax on tips is actually eliminated, a whole lot of cheapskates will reduce the amount they tip accordingly.

Based on?

Also, this whole no income tax on tips is a terrible idea.  Just because you work in a restaurant means you don't have to pay income taxes?  What kind of logic is that?  I know people who work in high end restaurants who pull in a TON of money from their tips, and now we're going to just exempt them from paying their share... because...???

[Spotcheck Billy]

What gets me is that most restaurants hand me an electronic bill that has options for 18%, 20%, and 22% tips.  Not bad you say, just choose the 18%, maybe more if I received very good or excellent service.  Well, these amounts are for the entire bill, INCLUDING TAX, not just the food and drink.  You expect me to tip on taxes?  Insanity.

AND STAY OFF MY LAWN!

[MU82]

Based on?

Also, this whole no income tax on tips is a terrible idea.  Just because you work in a restaurant means you don't have to pay income taxes?  What kind of logic is that?  I know people who work in high end restaurants who pull in a TON of money from their tips, and now we're going to just exempt them from paying their share... because...???

Because ... you know why. But no politics, so no discuss!

[Hards Alumni]

Because ... you know why. But no politics, so no discuss!

Both candidates proposed the idea.  Soooooo it isn't political.

[Pakuni]

Both candidates proposed the idea.  Soooooo it isn't political.

It's a terrible idea, and it almost certainly isn't going to happen.

[reinko]

For same day movers, I would tip them in the middle of their shift, "hey, great job packing everything up, excited to get everything into the new house", give them a boost to finish the job strong, then another tip when they indeed finish the job strong.

[4everwarriors]

Based on?

Also, this whole no income tax on tips is a terrible idea.  Just because you work in a restaurant means you don't have to pay income taxes?  What kind of logic is that?  I know people who work in high end restaurants who pull in a TON of money from their tips, and now we're going to just exempt them from paying their share... because...???

This just in...these cats weren't payin' taxes on der tips anyways, hey?

[wadesworld]

This just in...these cats weren't payin' taxes on der tips anyways, hey?

Do the hygienists that you don't pay enough before asking your patients to tip them pay taxes on said tips?

[Hards Alumni]

This just in...these cats weren't payin' taxes on der tips anyways, hey?

I assure you, that every time a tip is entered on a credit card there is a paper trail and the server pays taxes on that money.

Cash is a bit more of a wink and nod agreement.  Still is tax fraud though.

[Uncle Rico]

I assure you, that every time a tip is entered on a credit card there is a paper trail and the server pays taxes on that money.

Cash is a bit more of a wink and nod agreement.  Still is tax fraud though.

Lock them up

[Pakuni]

I assure you, that every time a tip is entered on a credit card there is a paper trail and the server pays taxes on that money.

Cash is a bit more of a wink and nod agreement.  Still is tax fraud though.

4ever doesn't use his credit card at Rickey's.

[Scoop Snoop]

I assure you, that every time a tip is entered on a credit card there is a paper trail and the server pays taxes on that money.

Cash is a bit more of a wink and nod agreement.  Still is tax fraud though.

The first part of your is undeniable, but the bolded? Technically, the IRS can track the income, but I have difficulty imagining an agent going through the credit card receipts. And the servers know this very well. Now if the restaurant owners are responsible for collecting this info by employee...then yes, the server's payment or avoidance of tax is easily identifiable.

[MU82]

At a lot of restaurants - perhaps most - servers share tips with back-of-room staff. Not sure how that works at tax-reporting time.

[Hards Alumni]

The first part of your is undeniable, but the bolded? Technically, the IRS can track the income, but I have difficulty imagining an agent going through the credit card receipts. And the servers know this very well. Now if the restaurant owners are responsible for collecting this info by employee...then yes, the server's payment or avoidance of tax is easily identifiable.

The tips get reported as wages on the server's W2 and are certainly taxed as such.  This is the case with all credit card tips... and a large part of the reason that servers want to be tipped in cash, OR have tips not be taxed.

[Scoop Snoop]

The tips get reported as wages on the server's W2 and are certainly taxed as such.  This is the case with all credit card tips... and a large part of the reason that servers want to be tipped in cash, OR have tips not be taxed.

Gotcha! I should have phrased my question as to whether or not the tips were reported on a W2 and if FICA had been deducted. Of course the amount paid to an employee would be shown on the restaurant's records. I just wondered if it was simply a cash (actually a check) payout.

On another subject-cash businesses (in past decades) were favorites for hiding Mafia money and profits from the mob owned businesses. I'm sure they hated the credit cards becoming the go-to payment method.

[pbiflyer]

I tip significantly in bars, especially when I am there with fellow MU alumni. But thankfully, they tip me back upright.

[pbiflyer]

What gets me is that most restaurants hand me an electronic bill that has options for 18%, 20%, and 22% tips.  Not bad you say, just choose the 18%, maybe more if I received very good or excellent service.  Well, these amounts are for the entire bill, INCLUDING TAX, not just the food and drink.  You expect me to tip on taxes?  Insanity.

Let's say it is a $100 restaurant tab. Let's go with 8% tax so $108.
Tip 20% on the pretax is $20, tip on post tax is $21.60...... Insane!

[WhiteTrash]

Both candidates proposed the idea.  Soooooo it isn't political.

TEAL?

[Scoop Snoop]

I tip significantly in bars, especially when I am there with fellow MU alumni. But thankfully, they tip me back upright.

 

[MuggsyB]

I assure you, that every time a tip is entered on a credit card there is a paper trail and the server pays taxes on that money.

Cash is a bit more of a wink and nod agreement.  Still is tax fraud though.

This is 100% accurate and not taxing tips is stupid.  When I tought tennis lessons over the summer in high school and college over 1/2 of my income was from private lessons.  I would get paid in cash and checks from my customers.  My grandma and mom were adamant that I keep a detailed record of every dime I earned, even though I knew others in the same line of work didn't do he same. Now, technically these aren't tips, but it's the same logic.  My grandma always told me if I didn't keep a record and pay taxes on my income, I am committing a serious crime and could go to jail.  The risk of that isn't worth a few extra bucks.

[Hards Alumni]

TEAL?

no

https://www.brookings.edu/articles/no-tax-on-tips-an-answer-in-search-of-a-question/

In recent weeks, both Vice President Kamala Harris and former President Donald Trump have announced proposals to exempt tips from federal taxes, much to the chagrin of economists across the ideological spectrum.