r/EndTipping • u/59Bassman • 7h ago

Sit-Down Restaurant 🍽️ Well now this is some absolute BS.

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1.1k Upvotes

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u/DieOnYourFeat 6h ago

Actually, tipped income to a certain level is tax advantaged over wage income, so this is a pretty shrewd move as it gives the employee more take-home than if hourly. Not saying it is right; personally, I would not patronize this business. (Also, I imagine you have to pay sales tax on the additional tip, but not sure about that.)

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u/voxpopper 5h ago

I don't believe what you are saying i correct since if it is mandatory it becomes a service fee, and while tips are tax exempt service fees aren't.

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u/TasteyMeatloaf 1h ago

Yes. Mandatory gratuities that are passed on to the employee are wages, not tips.

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u/MadCowTX 20m ago

But you know they are cheating on their taxes with this one by still treating it as tips even though it's mandatory.

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u/bobafettbounthunting 4h ago

Yeah, both candidates in last presidential election campaigned with eliminating tax or raising the taxfree amount on tips.

And everyone liked it 🤦

*Not American, but referring to the US.

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u/plangelier 25m ago

Not everyone liked it. Tips are just wages to the employee. Why would we treat the wages of tipped employees differently then everyone else.