You realize I'm stating, or at least trying to state, he's withholding taxes from his employees checks based on the sales for each shift they work. It's his employees paying the tax, not him. It's a tax supposedly on their earned tips. His business tax is completely a separate issues.

I know drivers are SUPPOSED to claim their tips on a form when they check out for the night (which gets entered in to the computer and deducted from the normal paycheck) but it's not enforced because it's not the responsibility of the business to force it on employees, all they have to do is have a sheet/option for them to claim the tips. Just like your brothers employees could just say "oh I got stiffed" after they put the money in their pocket.

the only thing was, you couldn't do that with credit card or check tips.


cash is the best kind of tip.

When I worked as a line cook in a brewpub, we had to declare our cash tips (we were typically tipped out by the servers) when we clocked out on the point of sale system. You could not clock out without reporting tips; the system wouldn't allow it. I imagine the policies of different businesses vary widely.

I really can't debate this because I have no restaurant experience. Well, at least not in the last 25 years thankfully. But My brother's e-mail is pretty plain he states "My accountant deducts taxes from employees based on 8% of sales for the shift." He went on to say he argued with his accountant that no one tipping and he shouldn't have to enforce the IRS rules. But his accountant told him it's a real hard sell to the IRS and a fight he should stay out of, to the IRS restaurant/food service equals tips.

If I read this correctly:

http://www.ustreas.gov/education/faq...iability.shtml

Then his account is doing it correctly. Sound like as long as you claim at least 8% of yours sales total as tips then there's no problem. If, as in his case, no one tips therefore no claims tips the restaurant has to deduct the amount as earned income regardless.

Any accountants here? Maybe they can clear this up. Maybe he's getting bad advice? Seems crazy to me to tax people on something you think they might be getting.

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..

thing is, IRS can't prove what you made in cash, if you claim you made nothing, then who are they to say any different?

you are innocent until proven guilty. Regardless not like the pizza guy working 18 hours a week is a threat to the real revenue of the U.S.A. tax brackets. :p

It does not work like that, Shaulk. The IRS can do a couple of things.

Thing One: Look at what the average pizza guy in your area makes in tips, and assign that number to you.

Thing two: Physically show up in your place of work, keep tabs on your tips, and extrapolate that number over the number of shifts you work.

My dad is a CPA and I am a former pizza guy, so (for possibly the first time ever) I know what I am talking about.

Oh, and ALWAYS tip your pizza guy!

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?

They do tax regardless of tips... If you make 4% tips on your total sales, you still have to pay 8%. If you make 20% and 8% of it is credit card tips, most people don't claim ANY cash tips... In the end, if you claim <8% over the course of two pay periods (usually a one month total period) you WILL get a notice from the IRS... usually within the next two weeks. I've seen this happen personally at more than one restaurant.

I just ordered two P`Zones from Pizza Hut for 10.99 + 0.73 tax + 2.50 Delivery Charge. It comes to 14.22. How much do I tip?

Base your tip off the pizza cost, that deliver charge should not influence your tip total.

Thats how it works in my book.

Then include how far your house is from the pizza place.

I'd tip 3-5$

Remember you're paying for a luxury that your lazy butt didnt want to do on its own :P gotta love delivery

$2.00 is fine.

Thank you for your explanation, I understand it better now. That makes much more sense. I sort of feel like a douche too but hey, you live and learn. I still think it sucks only because it isn't clear and I'm sure I can't be the only who thought that way too. It's too confusing, they should clarify that better because I'm sure a ton of drivers are getting shafted because people think the Delivery Charge goes to them.

According to Google Maps, it's (2.4 mi – about 6 mins) from my house to that Pizza Hut. If I tip 2.78, which I intend to, then I'm paying $17. That means I'm paying $7 on $10 of food for tax, "delivery charge" and tip. That seems ludicrous.

$2.00 is fine. It's more than 15%.

It does seem asinine. Wonder what % of the delivery charge go to the driver? My guess is jack. I'd tip the $3 or so, but I think I'd look elsewhere for my pie in the future.

I ended up paying $3.78 ($18) because she seemed nice and I always feel guilty if I don't tip enough. Uggh.. still pisses me off that this delivery charge is basically free money for them.

Yup, she was a fun girl. Pretty much did anything on a dare.

Welcome to the biggest scam known to man. That money goes straight to the pocket of the company because they're just playing mental trickery and refuse to lay it out as "ok, fine, it's 13$ worth of food, not 10$"

Just imagine if you had to pay an additional charge every time you went to pump gas, while maintaining the illusion that gas is still 2.50 a gallon. (omg I know, I'll be the cheapest gas station in town, we'll just charge a 1.00 fee for every gallon of gas and call it something clever!)

Sorry, I forgot it when writing my reply.

Yes I do, I think.

Perhaps tipping happens in richer restaurants, but all the ones I've been to, all the pizza's that have been to houses/places I have been to, I haven't seen someone give a tip or someone look like they expect one.

I guess it's just where we live, and what is expected/how people get paid for their work.



I live in Australia BTW.

which is where i worked as a delivery driver. it´s true that tipping isn´t expected like in the states but delivery drivers tend to be there as a last resort. i did get another job in the end since it simply doesn´t pay but there are people that are literally stuck in that job (age, capabilities etc) and i even saw a woman die in that job. and yes, drivers pay for their own car, petrol and maintenance. it is a very unfair job. most definitely deserve tipping for the amount of pressure that is being exerted on them. the worst poeple are the ones that wait with hand outstretched for the 5c change. they are the ones who end up getting subsequent pizzas cold and of course if someone tips well the drivers all know who they are and fall over themselves to get the pizza out 1st and that person will definitely get their pizza piping hot. people have a way of looking after each other....

I know, I'm tempted to start a gas station selling gas at $2.99 a gallon, but charge a $1/gal "Pumping Machine Maintenance Fee." They are, after all, paying for the "convenience" of not having to pump their gas out by hand.