K. Reece wrote:
> "zuuum" > wrote in message
> ...
>>
>> "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
>>
>> It is a stubborn legend, then. Any links to exactly what is legal
>> for the server's employer to withold? Perhaps it is witholdings
>> rather than actual taxes due.
>>
>>
>
> It's called "allocated tips." If you wait tables and do not report
> your actual tips to your employer they are required by law to
> "allocate" tip income to you. You then pay SS and FICA taxes plus
> income taxes on that amount. If you actually keep track of your tip
> income and can *prove* you made less than 8% of your sales in tips
> then you won't have allocated tips.
>
> Kathy

Depends on the restaurant, I guess. When I cashed out every night they
would calculate my tips on the spot based on the sales and make a record of
it. It was deducted from the meager base paycheck I got for my under "tips
and other compensation". A lot of servers are high school or college kids
who wouldn't even *think* to keep up with their tips for tax reporting the
next year.

Jill