I work at a restaurant where a make 3.00/hr When we have banquets the tip goes in our paycheck and is taxed?

Question

They just started this, we used to get cash and than claim our own tips... what do you think is right or wrong. I'm also in pa if that makes a difference.

Answer 1

Damn that sucks, now you have to claim it all.

Answer 2

The minimum wage in PA is $7.15. So, right off, you have a beef. Tips are for service above and beyond and should be given to the person who earned them. Unfortunately, that is not always the case since "unseen" employees like bus people and chefs end up without. Paying a share of the tips to those folks is fair. Tips are taxed - whether the employer withholds it or you do. There is no way of getting around it.

-MM

Answer 3

$3.00 an hr.? Sounds like the place your looking for is very cheap. I personally would find another job if you can. When they start putting tips in your paycheck the less you get because you can claim the state and federal minimums when you get cash tips which means you see more green. Good Luck!

Answer 4

Well, legally all tipped employees are spoze to claim ALL tips... but anyone whose ever been a tipped employee knows this is not what happens!



I do think it is fair (right or wrong has to do with the whole system) because all other non-tipped employees have to claim all of their income. I mean, a factory worker doesn't get to say, "okay, all work i do after 3pm won't get taxed".... do you see what I mean?

so be happy that you are in a job where part of your wages are able to be taken home untaxed!!!

Answer 5

Really that is the proper way it should be done. I worked in hotels for years. If they would have done that with my tips I would have quit. Then again I was making 400 a week in tips and claiming 10. That is wrong. A lot of hotels and restaraunts are resorting to this because of pressure from the IRS. So it is really the proper way. I know it sucks though.

Answer 6

I VOTE WRONG!!!!!

That is soooooo not cool. I personally KNOW how hard it is to be a waitress/waiter. It is serious labor -- And you don't make that much @ all based on your hourly wadges ($3). The only way you ever make anything is with your TIPS!!



I think your boss or the owner is just trying to rip you guys off. I would change jobs -- After all, you are the one BUSTING your @ $ $ for those tips!!! That is well earned & well deserved money!!!!



I would say something!!!!

Answer 7

Well, for starters, I'd be looking for a new job. I think what they are doing is legal...although it's really bad for you on your part. I believe they do that so the state/federal can get you in your taxes because they aren't being claimed. Either way you're gettin the shi**y end of the stick.

Answer 8

It sucks for you but it's legally correct. To avoid losing the tax up front, change your W-4 so that less tax is withdrawn from each paycheck. However, you will need to budget so that you can pay the extra tax you will owe at tax time.

Answer 9

By law, you are suppsed to claim all your tips. So this way they are making sure that you do. There is nothing really you can do, since what they are doing is legal.

Answer 10

I think the law was tightened up because waitstaff were not reporting their tips. I don't think it is just your employer. I think it is the requirement now.

Answer 11

That don't seem fair. Your min. wage for serving jobs to be raised then. I would seriously start looking for another job.

Answer 12

You're less likely to be audited by the IRS.

Answer 13

Find somewhere else to work. That's horrible. You're ALREADY getting below minimum wage BECAUSE you get tips... ******* hell.

Answer 14

I think you should pay your taxes like all of us who do...

thank you for your contribution

Answer 15

thats sucks go work somehwere else