No tax on overtime

TheBrownNote

Good thing I wore my brown pants
Most states allow, in the restaurant business to apply tips towards your minimum wage, known as a "tip credit". This is why servers aren't paid normal minimum wage, but less. The tip balances out. At the end of the day, if your tips and wages don't equal minimum wage, your employer must compensate the rest.

The real conversation should be No Tip Credits. Restaurants should pay competitive wages, and we shouldn't be auto tipping.
 

UnionStrong

Sorry, but I don’t care anymore.
I pay with a card and tip in cash
WDFD
IMG_1389.gif
 

KearsargeCoop

Baseball, dart board
Most states allow, in the restaurant business to apply tips towards your minimum wage, known as a "tip credit". This is why servers aren't paid normal minimum wage, but less. The tip balances out. At the end of the day, if your tips and wages don't equal minimum wage, your employer must compensate the rest.

The real conversation should be No Tip Credits. Restaurants should pay competitive wages, and we shouldn't be auto tipping.
Can't disagree more.
What's the incentive to give good service then? None. The employee will cover it.
Merit based pay is what allows alot of entry level workers to rise up.
 

vantexan

Well-Known Member
Most states allow, in the restaurant business to apply tips towards your minimum wage, known as a "tip credit". This is why servers aren't paid normal minimum wage, but less. The tip balances out. At the end of the day, if your tips and wages don't equal minimum wage, your employer must compensate the rest.

The real conversation should be No Tip Credits. Restaurants should pay competitive wages, and we shouldn't be auto tipping.
But the minimum wage is so low that, even if it balances out to minimum wage, that's awfully little to live on. The problem with paying competitive wages is the servers would have to be paid for the entire day at that wage but restaurants are typically only busy at meal times. They'd have to jack up prices even higher which would lose them business. Which would make it that much harder to stay in business. Literally the best scenario for all concerned is there's no taxes on tips. If you refuse to tip but think paying.them high hourly.pay is the way to go then I guess you're fine with restaurant costs going up 25% or more? Remember also.that the employer also has to match Social Security taxes.
 
But the minimum wage is so low that, even if it balances out to minimum wage, that's awfully little to live on. The problem with paying competitive wages is the servers would have to be paid for the entire day at that wage but restaurants are typically only busy at meal times. They'd have to jack up prices even higher which would lose them business. Which would make it that much harder to stay in business. Literally the best scenario for all concerned is there's no taxes on tips. If you refuse to tip but think paying.them high hourly.pay is the way to go then I guess you're fine with restaurant costs going up 25% or more? Remember also.that the employer also has to match Social Security taxes.
They're already charged anymore, and that's why we don't go there very often
 

KearsargeCoop

Baseball, dart board
But the minimum wage is so low that, even if it balances out to minimum wage, that's awfully little to live on. The problem with paying competitive wages is the servers would have to be paid for the entire day at that wage but restaurants are typically only busy at meal times. They'd have to jack up prices even higher which would lose them business. Which would make it that much harder to stay in business. Literally the best scenario for all concerned is there's no taxes on tips. If you refuse to tip but think paying.them high hourly.pay is the way to go then I guess you're fine with restaurant costs going up 25% or more? Remember also.that the employer also has to match Social Security taxes.
I told my staff at the restaurant I'm going to put your cc tips on your pay stub, what you do with your cash is up to you. That way everyone was covered.
 
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