Question:
So, waitresses and waiters have to declare tips on their taxes. That means I am paying their wages. Why isn't that tax deductble for me?

Answer:
States vary. For instance: When I lived in Ill. and worked as a waitress, if minimum wage was say $5.00 per hr. I was paid $2.50 per hour because they said we made the difference up in tips which would bring us up to the $5.00 per hour. In reality, the employer only had to pay us half of what minimum wage was. If we did not make enough tips to bring us up to $5.00 per hour, the employer was supposed to pay us the difference to make up for it, but they never did and most tipped employees where not told of the employers obligation by law to do this.
In California, You were paid whatever minimum wage was at the time and no less! If that was $5.00 per hr. than you were paid $5.00 per hr. plus whatever you made in tips. And you have to pay taxes on your tips too because the government doesn't want you to be able to buy any candy after you pay your rent!!!!

Share and Enjoy: These icons link to social bookmarking sites where readers can share and discover new web pages.
  • Digg
  • Sphinn
  • del.icio.us
  • Facebook
  • Mixx
  • Google
  • BlinkList
  • Furl
  • Reddit
  • StumbleUpon
  • Technorati
  • YahooMyWeb


Resource related business question and answer:

Mayer Brown - More About 'Wages' - When Are Tips included?

The court considered that a key issue in determining whether the tips should be part of Lam's wages was whether or not Wing On recognised the tips as part of Lam's wages. The ...

House-passed minimum wage bill cuts wages for tipped employees in ...

... the words of H.R. 5970, ? all of a tipped employee's tips from being considered as wages ... Provided, That the tips shall not be included as part of the wage paid to an employee to ...