Quote:
Originally Posted by Pballer
If no tax on tips passes, I for one will be reducing my tipping percentage. Is earning tips income really so noble as opposed to earning other types of income that people earning up to $160,000/year should be entitled to up to $25,000/year in tax free tips income?
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Quote:
Originally Posted by Normal
I couldn’t agree more. They want to appear like they are handing out a gift, but reality is, not many pay taxes on the tips they receive. The impact is nominal. SS recipients get thrown under the bus yet again.
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My guess is you probably have no idea how tips are reported. Establishments report to IRS receipts food, beverage, and tips. If receipts have -0- in tip line, a percentage is added by calculation of past records. Once employees file taxes red flags fly high for unreported tips by employees compared to reported receipts from restaurants. 20 years ago you could get away with under reporting tips. Not true today. Well it could be true if you were the owner, no staff, and cooked the books
If you personally know any wait staff in TV, you shouldn’t be surprised when they tell you tips are far less than other restaurants they were employed.
Yesterday at lunch our favorite waitperson had taken a job in Ocala along with 3 other staff members. They love their restaurant but can’t survive on lack of tips.
Her tip average last week about 10%. Our 2 person lunch bill without alcohol was $97. It’s not an inexpensive menu. I have never understood how someone can spend $50+ on a meal and leave a $5 tip on the table. Yes there are TV residents that tip appropriately, however, it’s not the norm.
Yes there are establishments with six figure waitstaff. You will find excellent chefs, above and beyond staff, with a built in % tip. Yet you will often see additional cash tip left on the table.