So a bartender making $5/hr wage plus $15 an hour in tips will be week be taxed on 1/4 of their income, while a factory worker making $15/hr will have all of their income taxed?
Those people already aren’t paying taxes on tips. When I waitressed, I reported all of my tips and ended up owing so much at tax season. When I complained, everyone asked me why I was reporting my tips.
So a bartender making $5/hr wage plus $15 an hour in tips will be week be taxed on 1/4 of their income, while a factory worker making $15/hr will have all of their income taxed?
Sounds inequitable.
Agreed. We should pay a livable minimum wage so that tipping becomes irrelevant.
Those people already aren’t paying taxes on tips. When I waitressed, I reported all of my tips and ended up owing so much at tax season. When I complained, everyone asked me why I was reporting my tips.
Nowadays, a lot of taxes are being paid on tips because they happen on the payment terminals.
If you get audited on those and didn’t pay them it’s a slam dunk win for the IRS.
So a change like this could be somewhat substantial now.
Could be. I worked at a diner with a credit card minimum, so lots of cash.
Also all the more reason to tip in cash instead of machine if you want to help your server out more.
Yea, and many people I know making tips average 30+ an hour.
Totally. I tried to keep it somewhat comparable in my example.