Quote:
Originally Posted by Inner Dirt
Don't servers now have an estimated amount for tips added to their w-2 wages based on sales? I would be curious how that works.
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Easy easy
The law requires them to claim every red cent of tips
There is no way to verify the numbers. Never has been.
Servers are required to claim up to a “total wage” of 7.25 an hour (min wage)
If they don’t then the employer must make up the difference.
* employers don’t allow that to happen
Most servers just claim 5.25 an hour in tips for every hour worked.
That totals a little over
5.25
+
2.18
7.43 an hour reported to the IRS
It provides a little cushion and everybody knows they make more than that or assumes anyway.
Or 8% of sales. 8 bucks on a hundred. Texas says the 7.25 an hour is sufficient. Some places/states do it the other way. But it’s the Feds that set the real rules
https://www.dol.gov/general/topic/wages/wagestips
