Originally posted by windword
I having a hard time taking you seriously. If you're a bartender you know that you HAVE to declare a certain amount tips. Even if all your tips
were in cash, and not recorded on the credit card receipt that has your employee number on it, the IRS would still expect you to pay tax on 8% of your
sales. That's not negotiable on "bad" days, that's an average that is held to the standard to take into account "bad" days and tip
Since youre familiar with the industry, you should also know that very few people actually report all tips.
HAVING to declare tips is like HAVING to submit the sales tax to your state when you purchase online. Sure it should be done, but not everyone does
it. I dont know how long you have spent in the service industry, but think real hard and see if you recall anyone ever being audited? I'm 34, been
bartending since the day I turned 19, and not once have I ever met someone who was audited. Without going into trade secrets
, there are plenty of
ways to avoid reporting the 8% as well.
I don't know about where you work, but for the past decades, all my paychecks reflected my total sales, as well as my hourly wages and
declared tips. Any major discrepancy in those figures will bring an IRS audit down on, not only you, but the entire house!
My paychecks reflect my credit card tips, my hourly wage, and my tip outs from the servers. Different states have different laws in regards to tips.
In my home state, the server is responsible for declaring their tips through our POS system. (Micros)
Furthermore, it's just stupid and immature not to see the future need for reporting you accurate earnings. If you get hurt or loose your job,
those reported tips are part of the percentage factored into your EDD or TDI benefits.
Well stupid and immature is your opinion, do not state it as fact. I set aside a percentage of my weekly tips as a reserve fund in case I get
hurt/unemployed/alien abducted for ransom.
If you want to buy a car or a house, your credit rating is based on your earnings. When I was in the process of buying my house, if I had only
reported the minimum wage that my employer paid me, minus my tips, which was a few times higher that my wages, I never would have been given the
credit to buy my home.
That is a downside for people who choose to use credit. Personally I do not. As stated before, I havent had a bank account in over a decade, purchased
my truck and my wifes car in cash (as a side benefit, you can usually get items cheaper when paying cash), and already own land and a small house but
I rent my primary residence. I have no desire to purchase a home, so credit will not be needed. As hard as it may be for some to believe, there is a
large number of people who choose to live outside of the "normal way of doing things". I dont want credit. I dont want to do business with a bank,
prepaid debit cards work just fine for paying my bills.
Hopefully that cleared it up for you.