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Do waiters/ hostess get taxed out of their paycheck?
i make 5 an hour plus 30% tip.. do we get taxed on our paycheck? i just got the job. my manager asked me to bring a copy of my id with social security number. Why do they need this information? Does that mean we get checks? i thought tips was in cash.. so does our paycheck include tip with our hourly base rate? Does anyone know? Please answer if you've worked at a restaurant! I'm in new york.
4 Answers
- 7 years agoFavorite Answer
you pay tax on the hourly rate and then you have to claim your tips so usually as a waiter your checks are next to nothing, but your tips should be in cash unless it comes from a credit card.
- ?Lv 57 years ago
Even if you get tips in cash you are responsible for paying taxes on them. Working as a server getting less than min wage and not reporting any tips is a sure fire way to an audit and HUGE penalties.
Also tips on credit cards will be automatically reported.
Now, do you have to report 100% of your cash tips? You are supposed to but many servers do not... just make sure you are paying tax on a large % of your tips and you will be ok.
And in general... if you make ANY money from ANYTHING it's considered income and you will be responsible for paying income taxes on it.
- Steve DLv 77 years ago
Yes you pay taxes - in fact, even though you only make $5/hour, you will be taxes at the same level as someone who makes $7.25/hour. Tips are expected to make up that last $2.25, so that is what you get taxed on.
As for the Social Security number, employers are required to get that information and provide it to the government when they pay your Social Security taxes. This allows the government to link your earnings to your Social Security trust fund account so you get proper credit for your taxes.
