[Retain Mike]

“had nothing to do with the tip. She did receive the entire tip, she did not pay taxes on it (the business did). Yes, she shared the tip at the request of the man that left it.”

So why does the business pay the tax?

[Jonty30]

That’s my question.
Whomever earns the money should pay the tax.

[z3n]

So why does the business pay the tax?

~~~

Because it was a credit card transaction, so the funds hit their bank account, and it’s taxable revenue.

What i don’t understand is why the restaurant had to pay her the full amount. The restaurant received the funds into their merchant account. They could have withheld tax.

[Fresh Wind]

So why does the business pay the tax?

That's because double taxation is the American Way. /s

[whitney69]

“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

[KittenClaws]

“had nothing to do with the tip. She did receive the entire tip, she did not pay taxes on it (the business did). Yes, she shared the tip at the request of the man that left it.”
So why does the business pay the tax?
——-

As I recall, at least through the 70’s (though I’m not certain), waitstaff paid their own taxes on the tips received. The amount to be taxed was reported to the restaurant via the honor system.

Then the feds got into it. No matter what your hourly rate was, the amount of tips received were added to the paystub to reach minimum wage. The amount was automatically added by the restaurant, no matter if the amount of tips reached that goal or not.

This wasn’t good enough for the feds, because, I assume, we are all guilty of subterfuge. This is when waitstaff were forced to report EVERY PENNY received in tips, so taxes could be taken from the paycheck.

And if I had been the waitress and told to share that large of an amount, (which is typically done voluntarily to busboys, cooks, etc.) I’d refuse the total. Yes, I would, and I have refused large tips in the past for various reasons. ( though not that large)

No wonder everyone is pissed off.😂