So a bartender making $5/hr wage plus $15 an hour in tips will be week be taxed on 1/4 of their income, while a factory worker making $15/hr will have all of their income taxed?
Those people already aren’t paying taxes on tips. When I waitressed, I reported all of my tips and ended up owing so much at tax season. When I complained, everyone asked me why I was reporting my tips.
So a bartender making $5/hr wage plus $15 an hour in tips will be week be taxed on 1/4 of their income, while a factory worker making $15/hr will have all of their income taxed?
Sounds inequitable.
Yea, and many people I know making tips average 30+ an hour.
Agreed. We should pay a livable minimum wage so that tipping becomes irrelevant.
Those people already aren’t paying taxes on tips. When I waitressed, I reported all of my tips and ended up owing so much at tax season. When I complained, everyone asked me why I was reporting my tips.
Nowadays, a lot of taxes are being paid on tips because they happen on the payment terminals.
If you get audited on those and didn’t pay them it’s a slam dunk win for the IRS.
So a change like this could be somewhat substantial now.
Could be. I worked at a diner with a credit card minimum, so lots of cash.