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Posted: 4/26/2024 12:36:23 PM EDT
[#1]
Quote HistoryOriginally Posted By 20229mm: All the resteraunt has to do is to make a profile for the resteraunt. Then do all the take out on that. Split the tips from that shift equally. Quote HistoryOriginally Posted By 20229mm: Originally Posted By WoodHeat: If a person comes into a restaurant and orders a takeout order...either from the bartender or a server, that employee then puts the order in the system and eventually takes the payment from the customer. The sale is recorded as part of the total sales of that employee, which the employee has to declare. So yes, the server (or bartender) gets fucked if the customer doesn't tip because they still have to declare the sale. Not saying that you should tip on takeout, but that's what happens. Get it? All the resteraunt has to do is to make a profile for the resteraunt. Then do all the take out on that. Split the tips from that shift equally. Many paces do, or the manager rings up the sale. Lots of places don't, and it ends up on the server's sales. |
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USA
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Posted: 4/26/2024 12:36:58 PM EDT
[#2]
I went back to using cash and keep some change in my pocket.
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Posted: 4/26/2024 12:38:13 PM EDT
[#3]
That’s why some restaurants have the hostess take care of carry out. They aren’t typically paid servers wages and make more hourly. They also aren’t typically tipped for anything other than carry out, so it winds up being a little extra money for them, even if stiffed.
Bottom line, either be a server at a restaurant where you can expect awesome tips, or don’t be a server. Or negotiate a higher wage from your employer. |
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Posted: 4/26/2024 12:39:58 PM EDT
[#4]
Quote HistoryOriginally Posted By StaccatoC2: Total BS. The server does not get taxed sales, unless the place is doing something like "we expect your average tip will be 10% so we will just assume you made a 10% tip on every order and report that as your income from tips". And if thats the case I would sure as hell talk to the boss or find another job. Quote HistoryOriginally Posted By StaccatoC2: Originally Posted By WoodHeat: If a person comes into a restaurant and orders a takeout order...either from the bartender or a server, that employee then puts the order in the system and eventually takes the payment from the customer. The sale is recorded as part of the total sales of that employee, which the employee has to declare. So yes, the server (or bartender) gets fucked if the customer doesn't tip because they still have to declare the sale. Not saying that you should tip on takeout, but that's what happens. Get it? Total BS. The server does not get taxed sales, unless the place is doing something like "we expect your average tip will be 10% so we will just assume you made a 10% tip on every order and report that as your income from tips". And if thats the case I would sure as hell talk to the boss or find another job. That's exactly what happens. They report a percentage of sales as tips. |
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LA, USA
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Posted: 4/26/2024 12:40:20 PM EDT
[#5]
Quote HistoryOriginally Posted By maslin02: They’re getting taxed for the tip they receive, because it’s income. They aren’t getting taxed on your $200 meal, they’re getting taxed on the $30 tip you left. Because it’s income. The rub is they’re getting taxed on $30 if you tip $0 or $2000. The 20% tips make up for the 10% tips and you should be even at the end of the day. Taking one transaction and making an issue of it is disingenuous. Quote HistoryOriginally Posted By maslin02: Originally Posted By pocketpkn: Even at sit down restaurants where the server (that does everything for your order except cook the food) who makes $2.35/hr and is getting taxed for the food YOU buy? They’re getting taxed for the tip they receive, because it’s income. They aren’t getting taxed on your $200 meal, they’re getting taxed on the $30 tip you left. Because it’s income. The rub is they’re getting taxed on $30 if you tip $0 or $2000. The 20% tips make up for the 10% tips and you should be even at the end of the day. Taking one transaction and making an issue of it is disingenuous. That's not how it works anymore. Servers get taxed based on the amount of their sales now, not what they declare in TIPS. Think about it, how is the IRS supposed to know how much cash they earned in TIPS? |
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MS, USA
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Posted: 4/26/2024 12:42:29 PM EDT
[#6]
Quote HistoryOriginally Posted By maslin02: The rub is they're getting taxed on $30 if you tip $0 or $2000. The 20% tips make up for the 10% tips and you should be even at the end of the day. Taking one transaction and making an issue of it is disingenuous. On the flipside if some customer walks in tips greater than 20% for good service that same tax would be under reported. Does it all come out in the wash or not? guess it depends on cash tip versus credit card tip? |
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Posted: 4/26/2024 12:44:35 PM EDT
[#7]
Quote HistoryOriginally Posted By AKFF: It's been 3 decades but back when I waited tables, you absolutely were NOT taxed on your sales. You were taxed on your income and tips. You were required to declare your tips, and the guideline was 10% of sales, even back in the 90s. Now it's not voluntary. The restaurant declares 15% of sales as tips on your W2. |
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USA
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Posted: 4/26/2024 12:45:05 PM EDT
[Last Edit: dmtsc]
[#8]
The computer could be programmed to exclude those sales by the use of the togo key in an order.
Plus, tipped people never claim all the tips so they should quit crying, sometimes they make tons more than 8%. |
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Posted: 4/26/2024 12:50:07 PM EDT
[Last Edit: Obo2]
[#9]
Quote HistoryOriginally Posted By Wildfowler: There's got to be a way that you could file your return so that you declare that you did not receive 100% of the tips that were generated on the tax document your employer provided. On the flipside if some customer walks in tips greater than 20% for good service that same tax would be under reported. Does it all come out in the wash or not? guess it depends on cash tip versus credit card tip? Typically severs are coming out ahead of the game on declared tips vs actual. There was generally always enough cash payers that the provable amount on cc is like half of actual if that. |
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Posted: 4/26/2024 12:55:57 PM EDT
[#10]
Quote HistoryOriginally Posted By AKFF: It’s been 3 decades but back when I waited tables, you absolutely were NOT taxed on your sales. You were taxed on your income and tips. It took me reading half way through this page to realize this was the complaint. Sounds like some people are wanting to lay it at the feet of people not tipping adequately. It also sounds like employees not being honest about their tip intake has lead to some employers deducting a fixed amount based on standard tips whether they get one or not. The bottom line is it is all the government's fault. The government requires this because the government sucks and has to tax every breath you take in order to have enough of your money to waste as an exercise of power. |
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LA, USA
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Posted: 4/26/2024 12:56:57 PM EDT
[#11]
Quote HistoryOriginally Posted By Obo2: Typically severs are coming out ahead of the game on declared tips vs actual. There was generally always enough cash payers that the provable amount on cc is like half of actual if that. That's why I always pay with a cc and tip with cash. |
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Posted: 4/26/2024 12:59:34 PM EDT
[#12]
Taxed on sales? That sounds incorrect. A server or bartender would have to tip out (bussers, food runners, etc) on to-go orders, but taxed on their sales? Gtfo.
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LA, USA
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Posted: 4/26/2024 1:11:34 PM EDT
[#13]
Quote HistoryOriginally Posted By nolan7120: Taxed on sales? That sounds incorrect. A server or bartender would have to tip out (bussers, food runners, etc) on to-go orders, but taxed on their sales? Gtfo. Eight Percent Rule Restaurant owners are legally allowed to report at least 8 percent of a tipped employee's gross receipts as tips on their behalf. Though traditionally it is customary to tip restaurant servers between 15 and 20 percent of a guest check, the IRS has determined that 8 percent is a fair estimate. Generally, restaurant owners who rely on tipped employees to claim all cash tips using an IRS form 4137, are responsible for deducting at least 8 percent of the employee's sales each pay period. If not, the owner is responsible for paying the difference himself. |
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Posted: 4/26/2024 1:12:45 PM EDT
[Last Edit: nolan7120]
[#14]
Quote HistoryOriginally Posted By LDL7071: The employee is required to make up the difference between the tipped minimum wage and the normal minimum wage if tips don't make up the difference. But, if a server works an hour getting paid 2.63, and has a single hundred dollar takeout order that doesn't tip during that hour, 8 dollars will be automatically claimed. On paper, the server made 10.63 that hour, so the employee doesn't have to make up the difference. In reality, that server just made 2.63 and got taxed as though they made 10.63. Quote HistoryOriginally Posted By LDL7071: Originally Posted By PeepEater: You can only be paid below minimum wage if your total wages end up over minimum wage. Say I was bartending and got paid $2.38/hrs working 6-6 but took home $150 in tips. That shift I averaged $27.38/hrs so my employer doesn't have to pay me anything else. In real life server's that don't make well over minimum wage are usually about to be fired anyway. The employee is required to make up the difference between the tipped minimum wage and the normal minimum wage if tips don't make up the difference. But, if a server works an hour getting paid 2.63, and has a single hundred dollar takeout order that doesn't tip during that hour, 8 dollars will be automatically claimed. On paper, the server made 10.63 that hour, so the employee doesn't have to make up the difference. In reality, that server just made 2.63 and got taxed as though they made 10.63. Incorrect. The employer makes up the difference, not the employee. Your confusing tip-outs with taxes. I worked in a restaurant for 12 years. On a $100 check (subtotal), we had to tip-out 4.5%. So if I got stiffed on that check, I would have to pay $4.50 out of pocket. Nothing is automatically claimed. That is up to the server who is filling out their nightly worksheet (forget what they're called) which allocates tip-outs and records a net amount of tips received. Edit: For example, let's say I had only one large party during my night shift and they ran up $2000 in sales and tipped 20% on the entire amount, or $400. Let's also say one of these turds wanted a separate bill for a $100 to-go order for which they paid cash and didn't tip. So $2100 in sales total. When I fill out my TRAC sheet that night, I will report $2100 in sales, $400 in CC tips less a $94.50 tip-out so $305.50 is what I'm walking with. Lastly, there'll be a big fat $0 listed on the TRAC sheet for cash tips. No one is allocating an extra 8% or $8 of pay on that $100 to-go order I got stiffed on. Maybe things are done differently at different restaurants or in different states. I worked for a fairly large private restaurant corp and they never added anything to our taxable income that we didn't report ourselves. In general, we'd strive to report 10-11% of cash tips but nothing required us to claim taxable income on income we never actually received. |
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Posted: 4/26/2024 1:31:01 PM EDT
[Last Edit: nolan7120]
[#15]
Quote HistoryOriginally Posted By pocketpkn: Eight Percent Rule Restaurant owners are legally allowed to report at least 8 percent of a tipped employee's gross receipts as tips on their behalf. Though traditionally it is customary to tip restaurant servers between 15 and 20 percent of a guest check, the IRS has determined that 8 percent is a fair estimate. Generally, restaurant owners who rely on tipped employees to claim all cash tips using an IRS form 4137, are responsible for deducting at least 8 percent of the employee's sales each pay period. If not, the owner is responsible for paying the difference himself. Quote HistoryOriginally Posted By pocketpkn: Originally Posted By nolan7120: Taxed on sales? That sounds incorrect. A server or bartender would have to tip out (bussers, food runners, etc) on to-go orders, but taxed on their sales? Gtfo. Eight Percent Rule Restaurant owners are legally allowed to report at least 8 percent of a tipped employee's gross receipts as tips on their behalf. Though traditionally it is customary to tip restaurant servers between 15 and 20 percent of a guest check, the IRS has determined that 8 percent is a fair estimate. Generally, restaurant owners who rely on tipped employees to claim all cash tips using an IRS form 4137, are responsible for deducting at least 8 percent of the employee's sales each pay period. If not, the owner is responsible for paying the difference himself. Here's an IRS link and quoted verbiage: https://www.irs.gov/taxtopics/tc761#:~:text=If%20the%20total%20tips%20reported,the%20employees%20who%20received%20tips "If the total tips reported by all employees at your large food or beverage establishment are less than 8 percent of your gross receipts (or a lower rate approved by the IRS), you must allocate the difference between the actual tip income reported and 8 percent of gross receipts among the employees who received tips. You may base the allocation on each employee's share of gross receipts or share of total hours worked, or on a written agreement between you and your employees. You're required to report the amount allocated on Form W-2 in the box labeled "Allocated Tips" for each employee to whom you allocated tips. Penalties may be imposed for both failing to file and failing to furnish a correct Form W-2 on which you fail to include this required information. Don't withhold income, Social Security, Medicare, Additional Medicare, or railroad retirement taxes on allocated tips, since your employee didn't report these amounts to you. Whether or not you're required to allocate tips, your employees must continue to report all tips to you, and you must use the amounts they report to figure payroll taxes." This is based on an "if...then" scenario which isn't an apples to apples comparison to a server who got stiffed on a to-go order and has to tip-out on it. |
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Posted: 4/26/2024 1:49:13 PM EDT
[#16]
Keep voting Democrat because they will pay off your Gender Studies degree.
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USA
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Posted: 4/26/2024 1:55:21 PM EDT
[Last Edit: borat]
[#17]
Quote HistoryOriginally Posted By tc556guy: A lot of people Quote HistoryOriginally Posted By tc556guy: Originally Posted By ServusVeritatis: Who’s tipping on takeout? A lot of people I have about 14 people on staff who just do carryout in my business. Thank God people tip! we make sure the order is right. Every box is opened and checked you get all your shit before you go. You see something you don’t like we fix it. People added to the credit card manually or they dump money in the jar. My people bend over backwards to make the customers happy. |
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GA, USA
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Posted: 4/26/2024 1:56:29 PM EDT
[#18]
Quote HistoryOriginally Posted By tc556guy: A lot of people Yep. They are guilted into tipping. Server packs a couple things in a bag, spins the ipad around, and it defaults to 18% tip. Then you have to go out of your way to press "other", "0%", enter. A lot of people get psychologically manipulated by this into just clicking OK and having their shit marked up 18%. |
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Posted: 4/26/2024 2:04:23 PM EDT
[#19]
Servers in Oregon and Washington already make minimum wage which is over 10 bucks a hour. Their tips are just gravy. Hell my son makes almost 13 just working at Dutch Bros slinging coffee.
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Posted: 4/26/2024 2:13:02 PM EDT
[#20]
I know many people who worked as a waiter or bartender. Every single one had more income, often significantly more income, than what was reported on their W2 as their wages and tips.
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Posted: 4/26/2024 3:42:44 PM EDT
[#21]
Just read through this thread fully and there's questionable information. Just because something is done one way at one restaurant doesn't mean it's done the same way at other restaurants. As a co-worker likes to say, there are many ways to skin a cat. This same analogy applies to how tips are handled at restaurants.
People's personal experiences should be reported as such and not interpreted as actual IRS rules. The 8% rule pertains to an annual report (Form 8027) filed by employers regarding allocated tips. |
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Posted: 4/26/2024 5:06:05 PM EDT
[#22]
We went to our local poboy shop and got two shrimp poboys, $47 with tax and then they flipped the screen over there was an option for a 35% tip.
Fuck all that. |
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GA, USA
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Posted: 4/26/2024 7:36:08 PM EDT
[#23]
Quote HistoryOriginally Posted By 77Bronc: We went to our local poboy shop and got two shrimp poboys, $47 with tax and then they flipped the screen over there was an option for a 35% tip. Fuck all that. I got my default tips set to more appropriate amounts. 
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Posted: 4/26/2024 7:40:30 PM EDT
[#24]
Quote HistoryOriginally Posted By LDL7071: https://www.irs.gov/faqs/interest-dividends-other-types-of-income/tips/tips Ya, that isn't it. That is about you claiming your tips and where to put them. |
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Posted: 4/26/2024 7:43:11 PM EDT
[#25]
Quote HistoryOriginally Posted By pocketpkn: Eight Percent Rule Restaurant owners are legally allowed to report at least 8 percent of a tipped employee's gross receipts as tips on their behalf. Though traditionally it is customary to tip restaurant servers between 15 and 20 percent of a guest check, the IRS has determined that 8 percent is a fair estimate. Generally, restaurant owners who rely on tipped employees to claim all cash tips using an IRS form 4137, are responsible for deducting at least 8 percent of the employee's sales each pay period. If not, the owner is responsible for paying the difference himself. Legally allowed and mandated to are different things. They are trying to help cover their employees tax liability. AND they are also using that 8% to estimate what they would owe in additional SS and medicare payments on behalf of the business and employee's deductions. |
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Posted: 4/26/2024 7:44:24 PM EDT
[#26]
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Posted: 4/26/2024 8:10:43 PM EDT
[#27]
Quote HistoryOriginally Posted By foxxnhound: Servers in Oregon and Washington already make minimum wage which is over 10 bucks a hour. Their tips are just gravy. Hell my son makes almost 13 just working at Dutch Bros slinging coffee. While true, that's quite the understatement. |
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OK, USA
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Posted: 4/26/2024 8:25:12 PM EDT
[#28]
Quote HistoryOriginally Posted By MeInMediocrity: So, they don't have the option of keeping a tip log? https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting I'll see that and raise you: https://www.irs.gov/faqs/interest-dividends-other-types-of-income/tips/tips "You must report tips you received (including both cash and noncash tips) on your income tax return. Any tips you reported to your employer are included in the wages shown in box 1 of your Form W-2, Wage and Tax Statement. Add to the amount in box 1 only the tips you didn’t report to your employer as required. This should include any allocated tips shown in box 8 on your Form(s) W-2, unless you have adequate records to show that you received less tips in the year than the allocated amount." So no, tipped employees don't owe taxes on allocated tips that they didn't receive. Do you really think anybody would be willing to work as a server for less than 8% tips? These people get huffy if they get less than 20%. I might have to take a hint from the IRS and start leaving noncash tips, like maybe a bag of valuable aluminum cans or some old clothes I was going to drop off at the thrift store. They can claim the same amount as income as I was going to deduct for my charitable donation 
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USA
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Posted: 4/26/2024 8:27:53 PM EDT
[#29]
FPNI
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Posted: 4/26/2024 8:29:41 PM EDT
[#30]
Quote HistoryOriginally Posted By WoodHeat: If a person comes into a restaurant and orders a takeout order...either from the bartender or a server, that employee then puts the order in the system and eventually takes the payment from the customer. The sale is recorded as part of the total sales of that employee, which the employee has to declare. So yes, the server (or bartender) gets fucked if the customer doesn't tip because they still have to declare the sale. Not saying that you should tip on takeout, but that's what happens. Get it? When did that nonsense become a thing? You used to have to declare tips. Cc tips were tracked, cash was cash |
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Posted: 4/26/2024 8:30:19 PM EDT
[#31]
Quote HistoryOriginally Posted By borat: I have about 14 people on staff who just do carryout in my business. Thank God people tip! we make sure the order is right. Every box is opened and checked you get all your shit before you go. You see something you don’t like we fix it. People added to the credit card manually or they dump money in the jar. My people bend over backwards to make the customers happy. So, same thing any fast food place is expected to do. |
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OK, USA
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Posted: 4/26/2024 8:52:40 PM EDT
[#32]
All restaurants should go to a tip-only model. No revenue means no allocated tips!
There's actually a coffee shop that I know of that does this, and is amazingly still in business years after opening  No clue what they do about taxes. |
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