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Waitress Gets $10,000 Tip on a $32 Bill, But One Week Later Gets a Nasty Surprise ( Employer fired her)
The Western Journal ^ | 17th February 2024 | staff

Posted on 02/19/2024 7:34:39 AM PST by Candor7

The dark cloud of a good deed hangs over a Michigan restaurant, because days after it made the news over a massive tip left by a customer, the server who received the tip was fired.

The saga began on Feb. 5, when a man had $32.43 worth of breakfast at the Mason Jar Café in Benton Harbor, Michigan. He left a $10,000 tip, according to the Detroit Free Press.

(Excerpt) Read more at westernjournal.com ...


TOPICS: Business/Economy; Food; Local News; Society
KEYWORDS: employer; jealousy; michigan; tip
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To: Candor7

I never tip on a credit card. I tip in cash. I always give the person the cash, not left on the table. I don’t care if they pocket it or put in a tip jar.

In the old days, the cook was usually the owner and the wait staff low paid. Today, with high minimum wage I question the entire reason for tipping in the first place.

I no longer eat out at 14 USD for a burger, fries and soda. Thus, high wages have forced me out of this situation the past two years.

Thanks DNC.


21 posted on 02/19/2024 8:12:38 AM PST by Jumper
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To: Mr. Lucky

Does the employer have to pay their 7.65% of social security and medicare on tips? Add that to about 3% credit card fees and this $10000 tip could cost the restaurant over $1000.


22 posted on 02/19/2024 8:13:08 AM PST by KarlInOhio (Democrats' version of MAGA: Making America the Gulag Archipelago. Now with "Formal Deprogramming")
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To: Candor7

Then there’s the fact that it was a $10,000 transaction...aka...the look see point for laundering. Hmmm...Is tipper IRS agent??


23 posted on 02/19/2024 8:15:10 AM PST by Sacajaweau
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To: KarlInOhio
Found my own answer: https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting

The employer does have to pay SS and Medicare on reported tips.

24 posted on 02/19/2024 8:18:13 AM PST by KarlInOhio (Democrats' version of MAGA: Making America the Gulag Archipelago. Now with "Formal Deprogramming")
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To: redfreedom

“There’s a good chance management had due cause to can her.”

Super duper easy to clear up. Just state reason she was fired and stop hiding behind the old we can’t comment on it because of “law” BS.


25 posted on 02/19/2024 8:18:54 AM PST by chuckb87
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To: PeterPrinciple

She was probably making around $50 a day in tips. That day she got 200 days worth of tips. Then she told the manager she wasn’t going to fold napkins, top off the salt shakers.


26 posted on 02/19/2024 8:20:52 AM PST by Farmerbob
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To: Jonty30
The story seems simple enough. She got a big tip and the restaurant had to pay taxes on that tip, so they fired her.

Why would a business have to pay the taxes on a tip?

27 posted on 02/19/2024 8:23:17 AM PST by tlozo ( Better to Die on Your Feet than Live on Your Knees )
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To: Candor7

No good deed goes unpunished.


28 posted on 02/19/2024 8:24:48 AM PST by AppyPappy (Biden told Al Roker "America is back". Unfortunately, he meant back to the 1970's)
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To: tlozo

I can only think that the state passed a law to ensure it gets its share of the tax revenue from tips and left it to the restaurants to either absorb or collect from the waitstaff.

Basically, in my view, it’s a way to put pressure on restaurants to stop collecting tips and pay the slightly higher wage, that can be taxed by the state, instead.


29 posted on 02/19/2024 8:26:52 AM PST by Jonty30 (What company makes rubber airplanes? Boeing, Boeing, Boeing.)
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To: tlozo
Never-mind :)

Employers are required to retain employee tip reports. Employers are also required to withhold taxes (including income taxes and the employee's share of social security tax and Medicare tax) based upon wages and tip income received by the employee and to deposit this tax. In addition, employers are required to pay the employer share of social security and Medicare taxes based on the total wages paid to tipped employees as well as the reported tip income.

30 posted on 02/19/2024 8:27:04 AM PST by tlozo ( Better to Die on Your Feet than Live on Your Knees )
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To: Candor7

Tip generously (but not outrageously) with cash and make sure the waiter/waitress gets it in hand. IMO


31 posted on 02/19/2024 8:38:05 AM PST by tflabo (Truth or tyranny)
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To: tlozo
It's complicated.

They are not paying income tax, that would come out of the tip as does her half of FICA.

However what you see coming out of your check to FICA is only half the story, the employer pays the other half. So the employer has to pay $620 for SS and $145 for FICA and $300 for the CC transaction.

That is a big chuck of money for a small business to have to fork out when they got none of the money.

32 posted on 02/19/2024 8:38:42 AM PST by Harmless Teddy Bear ( Roses are red, Violets are blue, I love being on the government watch list, along with all of you.)
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To: Candor7

What did he get “on the side”?


33 posted on 02/19/2024 8:38:43 AM PST by faucetman (Just the facts, ma'am, Just the facts )
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To: tlozo

“ Why would a business have to pay the taxes on a tip?”

So Ukraine can be funded and millions of illegals housed and fed.


34 posted on 02/19/2024 8:47:09 AM PST by libh8er
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To: HartleyMBaldwin

Exactly, I always use cash for my tips up to $50,000. Above that I ask for the wiring instructions for the server’s bank account. If I am tipping over a $1 million, I will usually run a few background checks on the server and have them sign a few non-disclosure papers.


35 posted on 02/19/2024 8:49:53 AM PST by Codeflier (Don't worry....be happy )
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To: KarlInOhio
That may be the explanation. Tips are subject to the same taxes, including Social Security, as any other wages.

If the employer forgot to withhold taxes, or credit card fees, it seems like the remedy would not be to fire the waitress, but to keep her on and deduct the charges from her future earnings.

36 posted on 02/19/2024 8:55:39 AM PST by Mr. Lucky
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To: Retain Mike

“So why does the business pay the tax?”

Michigan employment laws. They can be different in every state. And with this tip size, if she shared it enough she could get by without tax payment. But the business has not share possibility so they pay taxes on the amount earned. Just the law in a tip environment job in Michigan.

And inferring the firing of the employee for that reason without proof is a false accusation. And since the employees have been threaened and the business defrauded by people as business has been driven away, they could be sued for liable or slander. And if they are doing harm to someone for a non-proven accusation, they deserve it.

wy69


37 posted on 02/19/2024 8:57:36 AM PST by whitney69 (yption tunnels)
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To: Codeflier

WHY would the restaurant have to pay the taxes and not the waitress?? Makes NO sense!


38 posted on 02/19/2024 9:08:26 AM PST by Ann Archy (Abortion....... The HUMAN Sacrifice to the god of Convenience.)
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To: redfreedom
In reading the story, there appears to be much more to it than what’s on the surface.

There always is...A most reasonable answer!

39 posted on 02/19/2024 9:13:11 AM PST by pfflier
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To: Codeflier

Good thinking. Although if I were to make a habit of eating in places where breakfast costs $32, it’s less likely that I would ever have ten grand to give away.


40 posted on 02/19/2024 9:18:02 AM PST by HartleyMBaldwin
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