Stephen Sprunk wrote:
On 29-Feb-12 17:06, Adam H. Kerman wrote:
Stephen Sprunk wrote:
On 29-Feb-12 15:46, Adam H. Kerman wrote:
Stephen Sprunk wrote:

In the US, I rarely hear of restaurants not passing on tips to waiters,
but they _do_ have to take out taxes and report that income to the
gov't, whereas it's up to the waiter to report cash tips--and most
don't. This can add up to a significant difference in income for a
waiter, especially given all the special tax credits and such they can
qualify for by not reporting most of their income.

That law changed a long time ago. The employee reports both cash and
credit tips, not just cash, to his employer.

What the law says and what actually happens are often quite different.

Yes, Stephen. You still failed to note that the employee is required
to report ALL tips to his employer, not just cash tips, which is
why I followed up.

The _law_ may require them to report all tips, but what _actually
happens_ is often quite different.

You are still missing the bit that they are required to report ALL tips,
not just tips received in cash. ALL tips, including those via credit cards.
At the very least, the employer will compare the credit card tip reports
with his own records to see if they match.

As one waitress I know put it a few weeks ago when discussing taxes, "if
I reported all my tips, I wouldn't get food stamps, child care and
Medicaid; it'd be worse than not working at all." This is the natural
result of Republican policies that penalize the working poor.

Fine. She'd probably still get EIC.