TIPS ARE CONSIDERED A TYPE OF COMMISSION. SO UNLESS THEY KNOW EXACTLY HOW MUCH YOU HAVE MADE, THEY SHOULD NOT BE TAXING. FOR INSTANCE; IF YOU RECEIVE A TIP AS PART OF A BILL AND THE BOOKKEEPERS CAN CALCULATE THAT THEN YOU WOULD BE TAXED. BUT IF YOU RECEIVE A CASH TIP, THEN NO YOU DO NOT NEED TO BE TAXED ON THIS. YOU NEED TO CONTACT YOU LOCAL BETTER BUSINESS BUREAU AND MAKE SURE WHAT COMMISSION TYPES ARE TAXABLE IN YOUR AREA. EACH CITY IS DIFFERENT BASED ON STATE LAWS.
Is it the custom for a employer to tax your daily tips on your paycheck?
Posted By Admin On 20 Jul 2010. Under tax tips Tags: e-file, Financial Plan, Financial Planning, Free Financial Plan, Free Financial Planning, free retirement plan, free retirement planning, internal revenue service, IRS, IRS WEBSITE, irs.gov, refund, Retirement, Retirement Plan, Retirement Planning, tax deductions, tax filing, tax planning, tax prep, tax preparation, tax preparer, tax preps, tax professional, tax return, tax tip, tax tips, taxes
Never heard of that. That sounds pretty weird.
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No, unless they know what your tips are, or they actually include your tip in the bill.
Then the answer is yes.
For cash tips, they can’t tell how much you made.
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It may not be the cutom, but by law, they are supposed to. From what I understand more and more employers are starting to do it.
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yes, they’re required to with hold taxes on it (and you’re required to pay taxes on it) just like your salary.
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Not only is it customary it is the law that you report tips to your employer so that they can be taxed from your regular paycheck
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yes it is still part of ur pay
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where my wife worked at
TIPS ARE CONSIDERED A TYPE OF COMMISSION. SO UNLESS THEY KNOW EXACTLY HOW MUCH YOU HAVE MADE, THEY SHOULD NOT BE TAXING. FOR INSTANCE; IF YOU RECEIVE A TIP AS PART OF A BILL AND THE BOOKKEEPERS CAN CALCULATE THAT THEN YOU WOULD BE TAXED. BUT IF YOU RECEIVE A CASH TIP, THEN NO YOU DO NOT NEED TO BE TAXED ON THIS. YOU NEED TO CONTACT YOU LOCAL BETTER BUSINESS BUREAU AND MAKE SURE WHAT COMMISSION TYPES ARE TAXABLE IN YOUR AREA. EACH CITY IS DIFFERENT BASED ON STATE LAWS.
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SELF- I USED TO DO TAXES AND BOOKKEEPING FOR A LIVING, UNTIL 4 MONTHS AGO WHEN I FOUND OUT I COULDN’T WORK ANYMORE BECASUE I AM SICK.
Hi, I admit I have worked in the restaurant business for a few years, but when I was a waitress the law was that we were taxed 8% of our total sales for the pay period minus the local tax. That is a federal law that when into effect back in the 1980′s. You can go to the IRS website and found out exactly what the law of today is. I think actually that I just read on there that it is still that. In other fields that receive tips I don’t know how they work it.
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Not only customary, it’s required by law. You have to report income earned to the IRS, wages, tips, etc. If your company doesn’t report, then they and you get in big trouble.
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