Quote:
Originally Posted by retiredguy123
I agree. But, it's not just the servers who can hide the cash tip income. It reduces the restaurant's gross credit card income, which the banks report to the IRS. The servers are required to pay income taxes, based on 8 percent of the restaurant's overall gross proceeds, and prorated to each server. The servers get a W-2 for that amount.
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The days of a CASH business have mostly ended. Those credit cards, most of them, that 2% or so back is paid for in credit card fees to the business. The business of course adds it into the price charged. It is interesting that a business almost must take credit cards and their contract with the credit card companies says they cannot offer a CASH discount.