to you waiters/waitresses...

[Gaard]

Originally posted by: oldsmoboat

Originally posted by: masterxfob

Originally posted by: Gaard
jw791 -<<waiters/waitresses pay taxes based on the food bill >>

What's this mean? Who do they pay taxes to?

i'm not exactly sure if this is true, but i do know that waiters/waitresses must report their tips for tax reasons. uncle sam may have taken it a step further but i highly doubt that.

This is how is used to be done. I can't say for sure that it still is.
Servers run each order thru a machine like a cash register. It tracks their total sales based on their ID number. Of those total sales, 7% is deducted for Uncle Sam. It is being assumed they are being tipped. When they do taxes, they are supposed to report the difference between that 7% and what they actually made.

I never knew that. Is Uncle Sam saying a tip should be 7%?

 

[olds]

No, they just want to be sure they get at least part of it.

 

[guyver01]

Originally posted by: Gaard

Originally posted by: oldsmoboat

Originally posted by: masterxfob

Originally posted by: Gaard
jw791 -<<waiters/waitresses pay taxes based on the food bill >>

What's this mean? Who do they pay taxes to?

i'm not exactly sure if this is true, but i do know that waiters/waitresses must report their tips for tax reasons. uncle sam may have taken it a step further but i highly doubt that.

This is how is used to be done. I can't say for sure that it still is.
Servers run each order thru a machine like a cash register. It tracks their total sales based on their ID number. Of those total sales, 7% is deducted for Uncle Sam. It is being assumed they are being tipped. When they do taxes, they are supposed to report the difference between that 7% and what they actually made.

I never knew that. Is Uncle Sam saying a tip should be 7%?

no.. uncle sam takes 7% of the tip...

plus waiters/waitresses have to pay taxes quarterly... paying an estimate earned income, on those tips.

 

[Gaard]

Originally posted by: guyver01

Originally posted by: Gaard

Originally posted by: oldsmoboat

Originally posted by: masterxfob

Originally posted by: Gaard
jw791 -<<waiters/waitresses pay taxes based on the food bill >>

What's this mean? Who do they pay taxes to?

i'm not exactly sure if this is true, but i do know that waiters/waitresses must report their tips for tax reasons. uncle sam may have taken it a step further but i highly doubt that.

This is how is used to be done. I can't say for sure that it still is.
Servers run each order thru a machine like a cash register. It tracks their total sales based on their ID number. Of those total sales, 7% is deducted for Uncle Sam. It is being assumed they are being tipped. When they do taxes, they are supposed to report the difference between that 7% and what they actually made.

I never knew that. Is Uncle Sam saying a tip should be 7%?

no.. uncle sam takes 7% of the tip...

plus waiters/waitresses have to pay taxes quarterly... paying an estimate earned income, on those tips.

Kinda sucks. Paying taxes on an assumed income.