Quote:
Originally Posted by OrangeBlossomBaby
The bolded part of what you state is incorrect. Here's the actual paragraph pertaining to that point:
So yes, employers may absolutely require tip pooling with the bussers, cooks, hostess, and other employees who normally wouldn't get tipped, as long as the wait staff is paid the federal minimum wage (which is $7.25/hour), before any tipped income is applied. The employer and shift supervisor and shop manager can't receive any of that pool, but all the other non-management employees can, as long as the minimum wage requirement is met pre-tip.
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I understand the rule, but the IRS has a special tax rule for tipped employees. They are only required to pay income tax on 8 percent of the gross income of the business as pro-rated by the employer on the W-2. I am not sure how the IRS views this situation, but I think the tipped employees may no longer be eligible for the 8 percent rule. Also, how would the employer report the pooled tip income received by the non-tipped employees, who are not eligible for the 8 percent rule? It sounds like the tipped employees may lose their special status as tipped employees. Very confusing. As a restaurant server, I don't think I would work for an employer who shared my tip income with non-tipped employees.