Most people who work the service industry don’t claim cash tips, but credit tips are required to be claimed due to the whole being electronic and traceable thing.
If, as a service person, most or all tips are in cash, you just claim whatever brings you to minimum wage for that pay period.
This is obviously heavily dependent upon where you work - some places want you to claim all tips (but you still don’t claim cash usually) others, especially if you make above min wage like most bartenders, don’t care.
However, if you don’t claim those tips you can’t use that as income when taking out loans and applying for housing and whatever else. So it’s fucks people over pretty regularly.
Well yeah, if you dont declare all your income to dodge taxes, they shouldn’t be surprised the income can’t be used for credit. But if it’s just cash then it’s not traceable, you can declare less and keep more in your pocket than an electronic transaction
It also depends how the company declares their outgoing tips and contributions (different in US vs canada of even states/provinces).
The vast majority of full service restaurant transactions are by card. Something like 80% of restaurant transactions are by card, and full service restaurants with servers are even higher.
There’s not a ton of cash tips at this point, so underreporting cash tips doesn’t make as big of a difference as it used to.
Most people who work the service industry don’t claim cash tips, but credit tips are required to be claimed due to the whole being electronic and traceable thing.
If, as a service person, most or all tips are in cash, you just claim whatever brings you to minimum wage for that pay period.
This is obviously heavily dependent upon where you work - some places want you to claim all tips (but you still don’t claim cash usually) others, especially if you make above min wage like most bartenders, don’t care.
However, if you don’t claim those tips you can’t use that as income when taking out loans and applying for housing and whatever else. So it’s fucks people over pretty regularly.
a tipped employee who does that work for years will also see shit for social security later on, as that’s based on your reported and taxed earnings.
Well yeah, if you dont declare all your income to dodge taxes, they shouldn’t be surprised the income can’t be used for credit. But if it’s just cash then it’s not traceable, you can declare less and keep more in your pocket than an electronic transaction
It also depends how the company declares their outgoing tips and contributions (different in US vs canada of even states/provinces).
The vast majority of full service restaurant transactions are by card. Something like 80% of restaurant transactions are by card, and full service restaurants with servers are even higher.
There’s not a ton of cash tips at this point, so underreporting cash tips doesn’t make as big of a difference as it used to.