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Old 06-27-2023, 10:23 AM
Bill14564 Bill14564 is offline
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Quote:
Originally Posted by retiredguy123 View Post
I don't think the IRS would agree with you. I will need to look up the IRS rules, but I am pretty sure that they consider a tip to be a voluntary payment to a "tipped" employee from a customer. That is why they give special tax treatment to tipped employees.
I believe we see things the same way.

The IRS doesn't treat the mandatory service charge as a tip. It doesn't belong to the employee and it is not used as a credit to bring the tipped-minimum wage up to the minimum wage. The mandatory service charge belongs to the employer just as the money collected for the Corazon Iced Tea belongs to the employer.

The IRS sees it that way, the employer may use it that way, but that doesn't mean I have to like it or that I have to return to the restaurant that chooses to add it to my bill.
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