As a waiter, she will probably get a lot of that deducted tax refunded when she files next year as it won't push her into that high a bracket for the whole year.
The IRS just likes to make sure you know whose money it really is before they give you back any of it.
The customere should have given this to her as a gift. In that case the $ 10 000 would have been free of taxes to both.
Fixed it.
Although the RNC hasn't been much better of yet.
New IRS 1040-2007
1. How much did you make last year (wages, tips, interest, dividends).
2. Send it in.
Shalom.
The withholding is based on a rate schedule. That's why I do not like annual bonuses. If your base salary is 50k and you get a 25k bonus, they withhold at the 75k bracket.