Sunday, November 15, 2009

Can an employer dictate what a server declares as their cash tips?

I work for a company where the managers will write you up if you don't declare what your actual cash tips are at the end of the night. I always thought this was up to the discretion of the individual. Is an employer allowed to stand over you when you're declaring your tips? Is this really any of their business? I don't ask what they make...

Can an employer dictate what a server declares as their cash tips?
Yes, the owner is entitled to know if you are reporting your tips correctly. There are cases where if they tips were not reported then the IRS went after the employer for failure to report and also to pay the taxes on the tips which were unreported.
Reply:yes they need to know in order to file something that has to do with the taxes of the buisness or something...
Reply:You have to, by law, declare all of your tips. Your employer doesn't want an audit from the IRS, and neither should you. They are protecting themselves and you.
Reply:Yes. They are legally obligated to make sure their servers are reporting their tips accurately.





That is taxable income and the gov't wants to make sure they get their money.
Reply:yeah they have the right to do that, they already know whats gonna be on ur paycheck so why do u care?
Reply:It is most certainly NOT at the discretion of the individual. The law requires a tipped employee to accurately report the actual amount of all tips received. It also requires the employer to accurately report those tips on the employees W-2.





If the employer suspects that the employee is committing tax fraud, it is reasonable of him to take steps to be sure he isn't.





Richard
Reply:That is an issue between the tsxpyer and the IRS. Unless you are getting a matching contribution to your Social Security account.


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