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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.

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EinfachUnersetzlich@lemm.ee ⁨1⁩ ⁨year⁩ ago
Wait, you’re taxed on money you didn’t earn?

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- atrielienz@lemmy.world ⁨1⁩ ⁨year⁩ 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
  
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  - FuglyDuck@lemmy.world ⁨1⁩ ⁨year⁩ 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.
    
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- atrielienz@lemmy.world ⁨1⁩ ⁨year⁩ ago
  It’s technically tax fraud, but yes. You could be.
  
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  - FuglyDuck@lemmy.world ⁨1⁩ ⁨year⁩ ago
    Managment can not legally be part of tip pools in the US,
    
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    atrielienz@lemmy.world ⁨1⁩ ⁨year⁩ ago
    Please read the above thread because I recognize that it is illegal, but so are tax fraud and wage theft.
    
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