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#1 waitress_6625

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Posted 20 January 2013 - 10:37 AM

My employer makes me give her my tips so that she can count them at the end of my shifts. If I don't give them to her she won't sign my time card so I can get paid. I'm don't know why she is doing things this way. Is it illegal for her to do me that way?,

#2 LegalwriterOne

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Posted 20 January 2013 - 12:51 PM

Tips are taxable income. Some businesses just take taxes out and figure tips as a percentage of gross sales which doesn't always reflect how much or how little a server actually received. There's nothing wrong with the restaurant asking for the actual amount of tips.

#3 Tax_Counsel

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Posted 20 January 2013 - 05:23 PM

My employer makes me give her my tips so that she can count them at the end of my shifts. If I don't give them to her she won't sign my time card so I can get paid. I'm don't know why she is doing things this way. Is it illegal for her to do me that way?,


Federal tax law requires that the employer get from you the amount of your tips so that proper income tax and FICA withholding can be done by the employer. If you fail to report the tips to your employer, then you are subject to a penalty equal to 50% of the FICA taxes on those tips in addition to owing the extra FICA tax itself. Thus, the employer is not only protecting itself by following the tax law (the employer may be penalized, too, for not getting the tip information and doing the proper withholding) but also protecting you from that penalty. For more information, see IRS publication 531 which provides a lot of information you need to know about income tax and tips.




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