Any waiters or waitresess here? Or former? Have question that may lead to possible legal action.

shurato

Platinum Member
Sep 24, 2000
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76
My roommate got fired tonite from his job as a waiter...I believe it was a wrongful termination, but thats another story. The thing that is really shocking me is when I saw his paychecks for the first time today. Servers get paid hourly also correct? I saw his paycheck and it was for 1 month (they pay monthly...kinda weird) and it was for around $350 dollars. And literally over 99% seems to be taken out for taxes... now my roommate isnt the most brightest person and he just said that he was more worried about making tips and didnt really think too much into it.

One of his monthly paychecks was literally under $2 dollars for 145 hours of work. Now I've never worked as a waiter before so I don't know how it works...all i know is that the employer is not required to pay them mininium wage...but what I DO know is that they can't take that much out in taxes... The paycheck looks like one of those computer check blank check they printed out themselves on their printer. (It is a legit check from a bank, but they arent going through some paycheck processing company like i've gotten from all my employers)

So here's the run down...im going to round off to the nearest dollar...here's a sample paycheck. For a $350 dollar paycheck... 105 was taken out for federal, 108 for social security, 25 for medicare, and 109 for state....that leaves him litterally under 2 dollars. He has a few of em that wasn't even cashed cuz he didnt even think it was worth taking the time out to go cash them. Now is it just me or do I smell something fishy here.... So can anyone else shed some light on this? I think there is probably a case for him...
 

Orsorum

Lifer
Dec 26, 2001
27,631
5
81
That doesn't sound right... most I ever had taken out from a paycheck was about... 19% or so, at most. For everything.
 

n0cmonkey

Elite Member
Jun 10, 2001
42,936
1
0
Originally posted by: shurato


So here's the run down...im going to round off to the nearest dollar...here's a sample paycheck. For a $350 dollar paycheck... 105 was taken out for federal, 108 for social security, 25 for medicare, and 109 for state....that leaves him litterally under 2 dollars. He has a few of em that wasn't even cashed cuz he didnt even think it was worth taking the time out to go cash them. Now is it just me or do I smell something fishy here.... So can anyone else shed some light on this? I think there is probably a case for him...

Add in what he declared for tips.
 

Smaulz

Senior member
Jun 20, 2001
938
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0
You've also got to take into account that all the taxes from the tips are taken from his check. Therefore, any dollar he claimed at the end of each night is taxed. That's why I NEVER claimed more than 8% of my total sales for the night. That way you don't get completely screwed. :)
 
Apr 5, 2000
13,256
1
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What n0c said - you have to report your tips at the end of the night, and the government also taxes the tips you pocket every night. (I'm guessing if they're taking a lot for taxes he must be rolling in the tips)
 

Atrail

Diamond Member
Apr 20, 2001
4,326
0
0
Well it would help to know what his hourly wage was. Server minimum wage varies state to state.
It also depends on W2 witholding and the amount of tips he is claiming.
Some servers claim just enough tips to make minimum wage to avoid paying taxes of their full wage.
 

AdamDuritz99

Diamond Member
Mar 26, 2000
3,233
0
71
Hmm, that's a little odd. Back in my waitering days, I only had to report 4 an hour of tips. The rest was mine tax free. Does he report the exact amount? How much does he ususally make in a month? Is it over 1500 a month? 20% of that would be $300.

peace
sean
 

Imported

Lifer
Sep 2, 2000
14,679
23
81
Doesn't seem right at all.. I have a paycheck with $401.63 in earnings for a two week period, and $33.61 taken from a Fed Withholding Tax, $5.83 from a Fed Medicare Tax, $24.90 from a Fed Social Security Tax, $3.55 from CA Withholding, and $3.61 from a CA OASDI/Disability - EE (Whatever the hell that means..) coming to a total $330.13 for my paycheck during that two week period..

Then again, that was as a Host and not a server.. But I still did get tipped. o_O
 

shurato

Platinum Member
Sep 24, 2000
2,398
0
76
Ok for that month i was telling you about, he made $1,391 in tips....his hourly rate is $2.41.

Also he's worked there for about 4 or 5 months i believe so he has never filed taxes for working there yet. Again, i dont know anything about how working as a waiter works and how the resturaunts file and declare taxes. So it sounds like it is very possible this is all legal...just a little murky... Thanks for all your help.
 

KaBudokan

Senior member
Oct 10, 1999
962
1
71
OK - think about it: He had $350 in wages. Add in the $1400 in tips. They're taxing him on $1700.

The check's right. Up until December, I worked as a bartender (for about 12 years), and at my last job, I would usually owe money when checks were issued. I even made $5.75/hour, and it still didn't cover the taxes from my tips (plus a small amount for insurance, etc.).
 

beer

Lifer
Jun 27, 2000
11,169
1
0
Originally posted by: shurato
My roommate got fired tonite from his job as a waiter...I believe it was a wrongful termination, but thats another story. The thing that is really shocking me is when I saw his paychecks for the first time today. Servers get paid hourly also correct? I saw his paycheck and it was for 1 month (they pay monthly...kinda weird) and it was for around $350 dollars. And literally over 99% seems to be taken out for taxes... now my roommate isnt the most brightest person and he just said that he was more worried about making tips and didnt really think too much into it.

One of his monthly paychecks was literally under $2 dollars for 145 hours of work. Now I've never worked as a waiter before so I don't know how it works...all i know is that the employer is not required to pay them mininium wage...but what I DO know is that they can't take that much out in taxes... The paycheck looks like one of those computer check blank check they printed out themselves on their printer. (It is a legit check from a bank, but they arent going through some paycheck processing company like i've gotten from all my employers)

So here's the run down...im going to round off to the nearest dollar...here's a sample paycheck. For a $350 dollar paycheck... 105 was taken out for federal, 108 for social security, 25 for medicare, and 109 for state....that leaves him litterally under 2 dollars. He has a few of em that wasn't even cashed cuz he didnt even think it was worth taking the time out to go cash them. Now is it just me or do I smell something fishy here.... So can anyone else shed some light on this? I think there is probably a case for him...

That's exactly how mine was. My employer and the IRS had a 'safe harbor' tax on 12.5% of my tips. Bescause I also claimed '0' withholds, I didn't ever get a paycheck.

 

shurato

Platinum Member
Sep 24, 2000
2,398
0
76
Thanks for all your help...I guess I got a little excited and wasnt thinking rationally. I've never worked at a resturaunt or even known anyone close that has until recently so I was a little suspicious. Like I said, he's not really the brightest person so I wanted to take the initiative to find out for him and help him out. I'm glad theres always such diverse knowledgable group of anandtech members that can help with pretty much any situation.

p.s. apparently the owner of the resturaunt got into legal trouble before for something about taxes so that is another reason i sort of jumped the gun.
 

PowerMac4Ever

Banned
Dec 9, 2000
5,246
0
0
Originally posted by: Smaulz
You've also got to take into account that all the taxes from the tips are taken from his check. Therefore, any dollar he claimed at the end of each night is taxed. That's why I NEVER claimed more than 8% of my total sales for the night. That way you don't get completely screwed. :)
Got any more tips for cheating the government, commie?

 

yakko

Lifer
Apr 18, 2000
25,455
2
0
Originally posted by: Smaulz
You've also got to take into account that all the taxes from the tips are taken from his check. Therefore, any dollar he claimed at the end of each night is taxed. That's why I NEVER claimed more than 8% of my total sales for the night. That way you don't get completely screwed. :)

You were just a criminal commiting income tax evasion.
 

tcsenter

Lifer
Sep 7, 2001
18,564
350
126
One of his monthly paychecks was literally under $2 dollars for 145 hours of work. Now I've never worked as a waiter before so I don't know how it works...all i know is that the employer is not required to pay them mininium wage...but what I DO know is that they can't take that much out in taxes...
So apparently you don't know how ignorant you really are? It is entirely possible for a waiter/waitress to OWE MONEY TO THE HOUSE after he is taxed a certain percentage of his sales. I've had "checks" that were negative $13.00...yes that means I had to pay the restaurant $13.00 because my sales were so high.
 

shurato

Platinum Member
Sep 24, 2000
2,398
0
76
Originally posted by: tcsenter
One of his monthly paychecks was literally under $2 dollars for 145 hours of work. Now I've never worked as a waiter before so I don't know how it works...all i know is that the employer is not required to pay them mininium wage...but what I DO know is that they can't take that much out in taxes...
So apparently you don't know how ignorant you really are? It is entirely possible for a waiter/waitress to OWE MONEY TO THE HOUSE after he is taxed a certain percentage of his sales. I've had "checks" that were negative $13.00...yes that means I had to pay the restaurant $13.00 because my sales were so high.

What the fvck is your problem? I clearly stated I have no idea how wages and taxes work with waiters and waitresses and I've never even had a friend until my roommate who's worked in the service industry which happened to be his first time also. Apparently, it's ignorant to ever question anything that doesnt seem to make sense to you.
 

Compuguru

Senior member
Oct 9, 1999
556
0
0
Adding to what others have said thats a correct paycheck. Where i work waiters' checks come with VOID printed on them. The most ive ever seen a waiters paycheck is $5.