"Peter Aitken" > wrote in message
m...
> "zuuum" > wrote in message
> ...
> >
> > "notbob" > wrote in message
> > news:4t41d.180830$Fg5.104797@attbi_s53...
> > > On 2004-09-12, jmcquown > wrote:
> > >
> > >> Indeed, they tax your sales not what you *earn* which is just plain
> > >> stupid.
> > >> Sometimes I had to pay more money than I made. Nother reason not to
be
> a
> > >> wait-person.
> > >
> > > HUH!!??
> > >
> > > How can they tax your sales? A wait person is not selling anything?
> > > Please
> > > elaborate.
> > >
> > > nb
> >
> > The Feds adopted a policy of assuming unreported tips long ago, so now
> they
> > tax servers, whether they made the assumed percentage of tips or not.
> >
>
> This is plain and simply false. I have looked into this at length and the
> tax code is quite clear. All a wait has to do is detail their actual tips
> and pay tax on that amount. A percentage *may* be assumed if the wait does
> not itemize tips in the proper fashion. This is an urban legend that is
kept
> alive by waits who who want customers to feel guilty for leaving no tip or
a
> small tip when they get shitty service.
>
>
> --
> Peter Aitken
>
> Remove the crap from my email address before using.

There are places where the tips may not add up to 8% over the course of a
year. If those people don't keep accurate records and report their tip
income their employer may allocate 8% of their sales to tip income. If the
wait person did not keep records and did not report their daily tips the
employer will allocate tips on their W-4. Then the employee will pay SS and
FICA plus income tax.

I do taxes for several waiters and waitresses every year. Some report their
tip income and some don't.

Kathy