Quote:
Originally Posted by ktspktsp
I see. So it's taxes on the tips, not on the actual sale. Which seems fine. Unless you get tips less than 8%, then you'll have to explain it to the IRS..
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It's a percentage of the sales total for your shift, regardless of the tips you receive. So, yes as long as you are tipped at least 8% you're fine. The problem I have, if I understand it correctly, is it sounds like they're taxing people whether they're actually getting tips. My brother claims the average total sales for the day is a few K where as the tips average about $5 to $10 total. Just not a place people tip. Doesn't seem right to me.
This is the part that gets me: (from the UST's site)
Of course, employees must pay tax only on the tips they actually receive, and if an employee can establish that he or she received less in tips than the employer reports to the IRS, then the employee would pay tax only on the smaller amount.
Sounds to me like if you can prove you didn't get something then we won't tax you for it. How exactly do you prove a negative?