Quote:
Originally Posted by Kelevision
Wait staff A.) get taxed on 15% of their sales ( that may have risen to 20, I’m not sure) so if they get less than that, they’re actually paying taxes on money they didn’t make. It’s automatically deducted from their sales at the end of a shift. B.) they have to tip out what’s called tip share which goes to helpers like bartenders and bussers and the kitchen expeditor.
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Quote:
Originally Posted by Sandy and Ed
Ok. Two contradicting comments. Which is gospel in Florida?
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Neither are gospel in Florida. IRS rules are not that simple.
Tipped employees are required to report the amount of tips they receive to their employer. Reported tips are taxed as wages (makes sense).
Most businesses with tipped employees are required to determine if a reasonable amount of tips (8% per IRS 8027) were reported through the year. If not (if it looks like tips were under-reported) then at the end of the year they are required to perform a calculation based on a percentage of sales and "allocate" additional tips to employees on the W-2 form. The employee then can pay taxes on these allocated tips or provide sufficient documentation that they did not actually receive these tips.
"Tipping out" is a policy of an individual business. It is probably common practice for waiters to share tips with bussers and bartenders but I don't believe it is law (or gospel).
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