Quote:
Originally Posted by Bill14564
You seem to be implying that tipped employees are not taxed on their tips. Didn't a previous discussion on that topic show that they *are* taxed on tips to include an amount calculated from the total receipts of the business?
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They only pay tax on 8 percent of the restaurant's reported gross income. That is an IRS rule. But many posters are suggesting that people who tip 15 percent are undertipping. I go with the flow when tipping because money is not a consideration, but tipped employees are not paying income tax on their total income. I could be wrong, but I think restaurants are losing business because of mediocre food and service. I know that my visits to restaurants have significantly declined because of it. I think restaurants could provide better service if they had more control over their employees' income.