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Is tipping in restaurants in the U.S. reported to the I.R.S?
4 Answers
- 5 years ago
I worked in the industry and I have never ever heard of any WAITER or WAITRESS report their so called "tip earnings". and even if they did, would they be accurate? I DON'T THINK SO. Besides, Tipping is biased solely on what the server looks like(HOT, UGLY, RACE) Don't sound surprised you know what I'm talking about. Its not fair at all. And don't let me start on the regulating of how the bus boys are controlled on their tips. STOWWWWP with the TIPPING! Ultimately, it works out for the owners of the company owners. Certainly, the big tips keep a smile on my face, but that does not make it the answer to our problems in the big picture in the industry. stick it to the owners who allow management to hire on new employees and overwhelmingly tell them "We will only pay you minimum wage" (So I the owner can make millions off of you idiots) knowing full well that you are ok with this "TIPPING agreement" meanwhile, who knows how much the owners report to the IRS how much waiters earn legitimately. OWNERS DO NOT KNOW! Therefore, what is reported to the IRS? their is no accountabililty. TAKE RESPONSIBILITY OWNERS BEFORE ITS TO LATE.
BOTTOM LINE: Raising prices on your menu? GOOD LUCK WITH THAT.
AMERICA: I think it's too late we've already started this tip thing far too long ago and many generations feel it's OUR obligation to help employees and not that of the chisler owner's of the industry. BAAAAAMMMMMMMM!
- Anonymous5 years ago
By law, reporting tips income is required, as are any earnings.
Many if not most waiting staff in the US are outside the law, however, and do not report tips. The reason they do this is because, "Well, he/she didn't report, so why should I?"
The system of tipping in the US is a US richclass con job. US richclass food industry moguls force you (the customer) to pay the wages of their restaurant staff. You go to it like gangbusters, and US richclass live like kings with no staffing expenses.
- larryLv 55 years ago
Anonymous is correct...IF...The individual is classified as a "Tipped Employee". If an individual is not under such classification then, technically, the individual may not accept gratuity. The only person an individual hurts by not reporting 100% of their tips is themselves. Upon retirement, an individual's social security benefits are based on "Reported Income". If the individual does not report 100% of their income, it is call "Tax Fraud", punishable by fine and/or jail.
You can believe what you want, BUT, I have stated nothing but "TRUTH".
gg1 is an idiot.
Source(s): Food service Manager 30+ years - Anonymous5 years ago
Servers are required to report tips either realistically or by formula. Cheating on taxes is a federal offense.