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To: netmilsmom
And we tip with cash so it doesn’t hit the tax roles.

That helps sort of. Waitri are still taxed on a percentage of the gross ticket sales. Back in the day, when they first started doing that, I believe it was 8% (don't know what it is now). Tipping on the credit card means the entire amount is reported as income. And when you tip with cash and it is (or was) 8% of the total bill to be reported as income. If you tip 15~20% then the wait made out okay.

The government assumes that people tip, so for those of you who don't tip, you're costing the waiter money. He's paying taxes on money he didn't receive because you're (not you Mom) too cheap of a bastard to tip.

190 posted on 01/07/2010 11:31:06 AM PST by AFreeBird (Going Rogue in 2012)
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To: AFreeBird

>>And when you tip with cash and it is (or was) 8% of the total bill to be reported as income. If you tip 15~20% then the wait made out okay.<<

Great information! Thanks!


218 posted on 01/07/2010 11:54:09 AM PST by netmilsmom (I am Ilk)
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