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Author Topic:   No tipping?
Theodoric
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Posts: 9280
From: Northwest, WI, USA
Joined: 08-15-2005
Member Rating: 2.3


Message 26 of 41 (771015)
10-16-2015 11:25 PM
Reply to: Message 18 by New Cat's Eye
10-16-2015 3:36 PM


Re: Rules for Tipping
Claiming 10% of your tips wouldn't be real helpful. The employer is required to withhold 8% of all sales. So, your friends are getting dinged for 8% of all sales, so claiming 10% should be well below the mandated withholding. I think they may be telling you a story.

Facts don't lie or have an agenda. Facts are just facts
"God did it" is not an argument. It is an excuse for intellectual laziness.

This message is a reply to:
 Message 18 by New Cat's Eye, posted 10-16-2015 3:36 PM New Cat's Eye has not replied

Replies to this message:
 Message 28 by NoNukes, posted 10-17-2015 12:17 AM Theodoric has replied

  
Theodoric
Member
Posts: 9280
From: Northwest, WI, USA
Joined: 08-15-2005
Member Rating: 2.3


(1)
Message 31 of 41 (771024)
10-17-2015 10:15 AM
Reply to: Message 28 by NoNukes
10-17-2015 12:17 AM


Re: Rules for Tipping
Cat Sci says his friends only claim 10% of their tips in order to pay less taxes. This makes no sense as the employer withholds for for the waitpersons taxes based upon 8% of total sales. In other words the government expects your are getting 8% tips.
Lets say the person had $1000 in sales and and averaged 15% in tips. They would have made $150. If they claimed they only made 10% of that they would claim $15. Their tax withholding is going to be for $80. The government is not going to let them claim $15 in tips, they are going to tax them on $80.
ABE
I see I worded things unclearly in my original post. The employer does not withhold 8% of sales for taxes, but bases withholding on 8% of sales. I hope this clarifies.
Edited by Theodoric, : No reason given.

Facts don't lie or have an agenda. Facts are just facts
"God did it" is not an argument. It is an excuse for intellectual laziness.

This message is a reply to:
 Message 28 by NoNukes, posted 10-17-2015 12:17 AM NoNukes has seen this message but not replied

  
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