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Thread: My club isn't recording accurate tips...

  1. #1
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    Default My club isn't recording accurate tips...

    I've got a question for all of you. At my club, we are paid waitress wage ($3.83/hr) plus whatever tips we collect by the end. On the pay stub we collect, it's estimated we collect $30/shift. However, this isn't at all a stable and accurate number.

    I would say I, on average, walk away with $100 cash after tipout and house fee. There are nights where this is much more (and nights where I make nothing). My question is, my tips haven't been reported accurately, and I'm really concerned this could hurt me down the line.

    When I first noticed this, I asked the manager to let me report my tips accurately. He obliged me and my paychecks dwindled to pennies due to the government withholding the money. I didn't mind this because I was making enough.

    Then the bartender found out I was doing this and discouraged me from accurately reporting my tips, as there's no paper trail and I'm actually more likely to be audited if my tips are substantially different than my coworkers. So I listened to her and let management go back to reporting $30/shift.

    But I've been depositing all the money I've made in the bank, and now I'm really concerned that I will get audited anyway, and that when I file my taxes with an accountant, I should bring in the spreadsheet of what I actually made (I've kept a log of all my tips since I started working 3 months ago) and make it right.

    Does anyone have any advice? None of my deposits to the bank ever exceeded +$1000, but I don't know on what grounds the IRS decides to audit someone. I don't want this to hurt me down the line, but I'm afraid if I do say something, the entire club will get audited because of me, which is also not what I want.

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    God/dess SnuffleUffleGrass's Avatar
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    Default Re: My club isn't recording accurate tips...

    nawwwwww no worries.

    I dated a guy who was a waiter at Denny's about 20 years ago, & he did report his tips correctly but said no one else did. In general service workers under-report tips almost all the time because most of them are at poverty level living & that extra little chunk of cash to take home is crucial.

    The IRS is not going to bother you for something like this. Even with the magic of the Internet giving the IRS a supernatural reach into people's lives....they only audit people who meet certain criteria & service workers are rarely THAT. (You can PM me for more info on this. Just trust me.)

    "When in Rome, do as Romans do."

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  4. #3
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    Default Re: My club isn't recording accurate tips...

    *sighs* thanks that makes me feel much better. I was really wigging out about this

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    God/dess SnuffleUffleGrass's Avatar
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    Default Re: My club isn't recording accurate tips...

    Side note for girls on the board- IF you do work at a club that does a lot of credit card slips you might be looking at extra risk of audit. These are usually high end clubs that get a lot of spenders who prefer using credit card, or corporate cards.

    If you fall into this category you would benefit from the advice of an accountant.

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    God/dess Zofia's Avatar
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    Default Re: My club isn't recording accurate tips...

    If you report your NAICS code correctly, the IRS will already have data on independent entertainers, so they won't lump you into the wrong category which could trigger an audit. Further, for someone making $100/night, roughly $25,000 per year, the IRS is not likely to care at all unless you get the Earned Income Tax Credit. Because the EITC has been abused, the IRS watches it closely. You are doing the right thing by keeping a spread sheet. That will allow your accountant to give you the best advice on your taxes.

    Z

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    Banned Lucida's Avatar
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    Default Re: My club isn't recording accurate tips...

    Quote Originally Posted by SnuffleUffleGrass View Post
    Side note for girls on the board- IF you do work at a club that does a lot of credit card slips you might be looking at extra risk of audit. These are usually high end clubs that get a lot of spenders who prefer using credit card, or corporate cards.

    If you fall into this category you would benefit from the advice of an accountant.
    Tips from cards swipes belong to the company owning the bank account that gets the transfers from cards swipes.

    And just because strip clubs and other restaurants tell you in a contract that you are self-employed does not mean that you are legally self employed. The club is evading taxes and breaking employment laws and possibly also committing a crime called human trafficking.

    But anyway, you do you. Report your income honestly. And pay your taxes.

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