Came across an article about automatically taking taxes out of those gratuities that are automatically added to your tab when there is a party of X number of guests to be waited on.
Now, I've waited tables a LOT of years ago. Did I claim all I made in tips? Hell no! And I wasn't trying to make a living, as I still lived with my parents.
Waiters/waitress wages are usually far below the minimum wage level, due to the fact that they make up the difference in tips. I never have quite understood that. Hotel staff often get tips. But they make at LEAST minimum wage also. Cooks get tips, and at least minimum wage.
I don't see why. If someone does their job in such a fashion as to make customers happy, and the customer chooses to be grateful (hence 'gratuity'), It shouldn't make a rat fart of difference to your paycheck. If you suck, you get minimum wage, if you're effecient and polite and friendly, you get tips, too.
And now the IRS has decided to get their piece of pie. Not from the counter display, of course, but from the wait staff themselves:
The IRS ruling was issued in 2012 to clarify and update earlier tax guidance on tips, which didn't spell out how automatic tips were to be treated. Restaurants persuaded the agency to delay implementation until next year.
In a statement, the IRS said it noticed an increase in the use of "auto-gratuities" and that it believed "additional clarification in this area would be in the best interest of tax administration." (emphasis added) Full story here.
Thank obama we're looking out for the poor overworked tax administration. If they do this right, they may even get a tip or two....
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