Comment on Restaurant Bill
KairuByte@lemmy.dbzer0.com 7 months agoThat isn’t negative tips. The lowest you can make in tips is $0. Even when tip pooling, the lowest you can make is $0, which requires no tips what so ever to have been given. There is no 100% tax rate, and you are at no point ever paying into the tip pool out of your own pocket.
atrielienz@lemmy.world 7 months ago
I understand what you’re saying. But for you who is now down from $5 to $2.50 to a $100 that is the. Taxed you’re effectively making less money than you earned. That’s why you can have negative net even while making take home pay.
But think about what might happen if the bill is paid incorrectly in cash. The company will absolutely take cash tips to compensate in the event that you or someone else messed up when counting the cash or giving change or whatever. With tip pools it’s unlikely. But it has happened.
EinfachUnersetzlich@lemm.ee 7 months ago
Wait, you’re taxed on money you didn’t earn?
atrielienz@lemmy.world 7 months ago
Apparently Federal Law sort invalidates the legality of a tip pool altogether because the tip only counts as a tip if the person who tips determines who the tip is given to and how much and it’s non compulsory. But a lot of places ignore that as well.
www.nolo.com/…/state-laws-tipped-employees.html
FuglyDuck@lemmy.world 7 months ago
Management was stealing wages from you, comitting tax fraud
Thst is not how taxes work, and if they’re reporting it that way they’re breaking the law.
atrielienz@lemmy.world 7 months ago
It’s technically tax fraud, but yes. You could be.
FuglyDuck@lemmy.world 7 months ago
Managment can not legally be part of tip pools in the US,