I’ve heard of a couple of servers actually paying big time come tax season, like a few thousand dollars. I assumed that the void checks I got every two weeks was the government taking my hourly $2.63 for taxes. I make average $200 a night in tips. Is it possible that I would still owe the government more on top of my $2.63/hour that I never see??
It depends on your gross income for the year . Lets say you work 50 weeks per year, 6 hours per night , 5 days per week . That is around 1500 hours per year . $2.63 x 1500 hours = $3945 . If you claim $200 per night, you have a gross of $50,000 per year .
If you use the tax brackets charts from the IRS, you may find the government wants to collect much much much more than $3,945.
I would say it is safe to say you will be paying the IRS some more money at the end of the year .
You will need to pay around 7.5 % for Social security, medicare, unemployment, plus around 14 – 18 % for federal tax. if you live in most states , you will have to pay another 5 % or so to the state income fund .