PipersSon
Distinguished Member
- Joined
- Jan 11, 2011
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But if your tips averaged less than 15% over this time, say 14% (=$1400), you'd be paying more than your fair share of tax?
And if you were above 15%, you'd be paying less?
No, they report 15% of YOUR sales to the IRS on YOUR behalf. So every paystub, say 2 weeks, has a income on it that represents 15% of your total sales for those 2 weeks.
So say you sold 1000$ a shift and worked 10 shifts in 2 weeks, they'd report 15% of 10,000 or $1500 in income to the IRS.
In the old old days you earned cash and could report whatever but CCards have made that a thing of the past. In the 90's the IRS came down hard on this.
But if your tips averaged less than 15% over this time, say 14% (=$1400), you'd be paying more than your fair share of tax?
And if you were above 15%, you'd be paying less?
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