[Hambone 1934]

Exactly..Once the taxes kick in for that higher wage,those tax free tips will be looking real good....

[RW_Whacko]

Exactly..Once the taxes kick in for that higher wage,those tax free tips will be looking real good....

Here, the restaurants take 8% of the check totals witholding for waitress tips. Its supposedly a federal law.

[zek157]

Tips are not tax free as most are on cards.
My kids waited in the recent past, so I know their cases there was withholding/taxes paid on much more that $3 an hour.

[3RIVRS]

Tips are not “tax free.” At least not at the state level. I did my son’s taxes when he served and VA doesn’t care if it is hourly wage or tips. It is income and taxed. Quite the shock when he found out he owed money because the state only taxed the hourly wage in his check but the total income on his W-2.