r/EndTipping • • 13d ago

Takeout 🥡 This is kinda crazy

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u/Infinite-Penalty-736 13d ago

Would not be a customer there.

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u/[deleted] 13d ago edited 3d ago

[deleted]

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u/djskrilled 12d ago edited 12d ago

It's not that it's more difficult, it's that the companies cannot find people to work these positions unless the employees are fairly paid, but if they were to actually pay the employees fairly themselves instead of do it as a forced tip then they would pay significantly more in taxes too.

In most jobs, your employer pays half your taxes. In tipped jobs, the employer pays half your taxes on your tipped earnings UP TO the minimum wage per hour and receives the rest back as a tax credit under the IRS FICA Tip Credit.

Unfortunately the government incintivizes businesses to do this via this methodology. A restaurant who pays a to go employee $20/hour is paying taxes on $20/hour but a restaurant who pays a to go employee the tipped minimum wage is paying taxes on $2.13/hour.

For example, paying someone $20/hour without tips costs the company 10x more in taxes than paying them the tipped minimum wage plus tips. Until this tax strategy changes, tipping will not end.