[T-Bird45]

Yep, she was probably raking it in - 3,4,5,600 on a good night, and then there are the Limbaugh nights. She is only taxed on minimum wage too, unless she reports the tips. (cough cough).

They have to report actual tips or the restaurant has to assign 10% of her gross sales to her salary as imputed tip income. Of course, this is subject to the infamous tip share required by the restaurant so it's to her advantage to report actual tips after the tip share.

[C. Edmund Wright]

They have to report actual tips or the restaurant has to assign 10% of her gross sales to her salary as imputed tip income.

And you think in reality it happens just like this?

Of course, this is subject to the infamous tip share required by the restaurant so it's to her advantage to report actual tips after the tip share.

In my experience, a good tender or wait staff can average over 20% - when you factor in cash sales and monkeying around with the register. Especially for tenders who manage their own register. The tip out is generally a third or a fourth of total tips - so you're still "in the money" by imputing 10% - because you're probably making 14-17%.

[2ndDivisionVet]

IIRC, the IRS now assumes how much of a tip you make and taxes you based on that.