"jmcquown" > wrote in message
...
> Peter Aitken wrote:
> > "kilikini" > wrote in message
> > ...
> >>
> >> "Nancy Young" > wrote in message
> >> ...
> >>> notbob wrote:
> >>>>
> >>>> 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.
> >>>
> >>> They assume you make a certain percentage of tips. I forget what
> >>> the percentage they assume. Unfortunately, it's a result of massive
> >>> underreporting by waitstaff.
> >>>
> >>> nancy
> >>
> >> That's the very reason why it's so important to tip the staff. The
> >> government automatically taxes the staff based upon the sales that
> >> they did. If people don't tip, the waiters and waitresses pay for it
> >> anyway. It's not fair, IMO, but that's how it works.
> >>
> >> kili
> >>
> >>
> > This is bullshit - see my other message.
>
> It's not bullshit. They didn't institute this until hmmmm, 1981 or so.
> After that, I recall many times I earned less in a given night than I made
> in wages + tips many a day because of what I had to report based on
> food/liquor sales.
>
> Jill
>
>

The employer may *withhold* based on a percentage but the tax you pay is
based on the tips you actually received. The tax code is quite clear - I
posted the relevant links in a similar discussion a year or so ago. Of
course I bet many places screw their employees by lying to them about the
tax law.


--
Peter Aitken

Remove the crap from my email address before using.