this post was submitted on 20 Jun 2026
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[–] jrs100000@lemmy.world -1 points 18 hours ago* (last edited 18 hours ago) (4 children)

And tips are normally reported as a percentage of gross sales. Technically you can report less, but thats a good way to get catch a tax audit, and if the total tips reported from the restaurant fall too low the whole place will be audited. If your actual tips are short for the day the standard practice is to report the normal percentage and eat the loss.

[–] techt@lemmy.world 3 points 17 hours ago (2 children)

Wow, for real? This is a good argument in support of abolishing tipped wages. Is there anything you can point to for that being standard practice so my source isn't just an internet person? It's clearly not going to be written down anywhere, so I'm looking for an article or written testimony and not finding anything

[–] jrs100000@lemmy.world 0 points 15 hours ago (1 children)
[–] jj4211@lemmy.world 2 points 7 hours ago

That does not say over report your tips to the IRS if tips are so low they would have forced your employer to pay a higher wage.

I could see making that judgement call if the employer is a dick but customers are usually exceptionally generous tip wise, and you had an isolated slow night. However if day to day the tips are normal, then taking the hit for your employer is just a recipe for continued exploitation.

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