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Thread: legal: tip question

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    Veteran Member Phedre's Avatar
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    legal: tip question

    I'm not sure if anyone here would know about my question because it doesn't really pertain to dancing but I know we have some intelligent members that are involved in accounting and legal stuff and all so I think MAYBE someone will know:

    Do cashiers legally have to claim their tips? I am managing a drag strip concession/beer stand and I am being told I will have to lower the cashier's hourly wage or claim their tips. As far as I have ever understood, cashiers do NOT have to claim tips. Any advice or law that says that would be appreciated.... or even a way for me to find such information would be great too! Thanks!
    Phedre
    ~ my very own pole dancer!

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    Default Re: legal: tip question

    Quote Originally Posted by Phedre
    I'm not sure if anyone here would know about my question because it doesn't really pertain to dancing but I know we have some intelligent members that are involved in accounting and legal stuff and all so I think MAYBE someone will know:

    Do cashiers legally have to claim their tips? I am managing a drag strip concession/beer stand and I am being told I will have to lower the cashier's hourly wage or claim their tips. As far as I have ever understood, cashiers do NOT have to claim tips. Any advice or law that says that would be appreciated.... or even a way for me to find such information would be great too! Thanks!
    Everyone MUST claim all income. Period. There is no exception in the tax code for cashiers.

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    God/dess VenusGoddess's Avatar
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    Default Re: legal: tip question

    They have to claim their tips through your payroll system and you'll have to pay taxes (just like they will) accordingly.

  4. #4
    Yekhefah
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    Default Re: legal: tip question

    When I was a waitress, I had to claim mine.

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    Member Jon_CPA's Avatar
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    Default Re: legal: tip question

    An employee who receives more than $20 in tips in a one month period must report those tips to their employer by the 10th day of the following month ( ICR Code Sec 6053(a) ). The employer is responsible for the employer’s portion of payroll taxes on the regular wages and reported tip income, and for withholding from the employee’s regular wages the amount of payroll taxes and income tax withholdings on the employee’s regular earnings and reported tip income. If the employee fails to report the tip income to employer then they are responsible for both the employee’s and employer’s portion of the payroll taxes on the unreported tip income. The danger is that an employee who is caught failing or underreporting tip income on their income tax return could seek to avoid some of the penalty, and the employer’s portion of the payroll taxes by claiming that they did report the tip income to their employer.

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    Veteran Member Phedre's Avatar
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    Default Re: legal: tip question

    Okay so this is the scenario, my 1 cashier has a tip jar at ther register, she only CASHIERS, 2 other people prepare the food and the tips are spilt amongst them. So last weekend they all walked away $2 richer, so they may make $10 a month. Are you saying if they make over $20 that I need them to report it? This isn't making shits worth of sense you know.
    Phedre
    ~ my very own pole dancer!

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    God/dess Emily's Avatar
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    Default Re: legal: tip question

    You said you make under $20 in tips a month, so it seems you don't have to report it.

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