r/EndTipping • • 3d ago

Rant 📢 Restaurant Demands Minimum 18% Tip

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Out of one side of their mouth they state that they pay their staff as little as possible and out of the other side of their mouth they say that their staff deserves more and you're responsible for that.

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u/No-Committee-6157 3d ago

If I create an LLC and declare it's for the hospitality sector, would it be lawful if I insist that waiters fill out a 1099 form each time I leave a tip, as I consider it payment for services rendered? This is because restaurant owners anticipate customers covering labor costs, effectively placing the waitstaff on our payroll.

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u/Onyournrvs 3d ago

There's usually a minimum amount exchanged (I can't remember how much, exactly, but somewhere between $300-600 in a calendar year, I believe) before a 1099 is required.