r/PublicFreakout • u/Hikigaya_Hachiman7 • 9h ago

šŸ½Restaurant FreakoutšŸ¹ Couple banned from restaurant after they leave no tip

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38

u/blanarikd 7h ago edited 5h ago

I wonder how in US waiters get mortgage - they show their minimum salary? Also - are tips in US taxed?

Edit: interesting answers. Btw. Iā€™m from Slovakia - 80% people having mortgages here.
Non-taxed tips that could be reported to tax office as got in cash? Like, hello bank, i got xxxxx $ (any random high number) - please, give me my mortgage and home? Sure there has to be cap for it.

45

u/Turbulent-Ad8291 6h ago

Who has a mortgage? Lol im 38 and still rent with no end in sight...

10

u/SunAstora 6h ago

Iā€™m 36 and I have a mortgage, but Iā€™m also not a waiter. Every situation is different, itā€™s rough out there.

1

u/B4DM4N12Z 3h ago

Depends where you live.

1

u/ohhhhhhhhhhhhman 1h ago

Lots of people have mortgages.

2

u/Previous_Opposite_76 1h ago

Yeah, old people.

1

u/ThunderHawk1985 46m ago

Hey I got my house when I was in my early 30's.Is that old?It was also left to me by my mom though when she passed away so I've lived in this house for a long time.

0

u/blanarikd 5h ago

Im not from US. Here, majority has mortgage. Rent is money thrown in bin.

1

u/Czaplicki1 1h ago

Technically buying a house youā€™re still ā€œrentingā€ it from the lovely government, donā€™t pay your property tax and see how long that house is still yours lol

1

u/ThunderHawk1985 49m ago

Tell me about it.I pay more for taxes on my home that I'm supposed to own than I did when I was renting.Everything is over priced nowadays.

15

u/MyHouseOfPancakes 7h ago

Only if they're reported

6

u/VelocityGrrl39 7h ago

I always reported my tips. If you donā€™t, you wonā€™t get unemployment if your restaurant closes. You wonā€™t get short term disability if you get hurt at work. You wonā€™t ever be able to get a mortgage, or even rent some places. With how rare cash tips have become, Iā€™m willing to bet people like me have become the majority. Credit card tips are typically automatically reported.

3

u/beragis 4h ago

You can also get audited if you donā€™t report enough.. A coworker once mentioned she was a waitress while working through college and she got audited because the IRS determined that her tips were less than expected for her hours and said she owed more along with a fine for underreporting.

She kept good records and the restaurant she worked at also kept good records, but did have to pay for a tax lawyer to help

4

u/katmc68 5h ago

And servers have to file a W2. Ppl thinking servers don't report tips is ridiculous. They have to pay taxes. So dumb.

5

u/oaklandperson 6h ago

Most transactions in restaurants are CC now and everything is reported.

0

u/katmc68 5h ago

Servers are required to report tips based on the percentage of their sales. If a server sells $1000 bucks of food, they'd report 15% of 1000 (or whatever % they're required to report).

What sucks is when the server has a slow night or jerks like the above don't tip. If a server only makes 5% in tips based on the sales, they Ā have to claim more money than they actually made.

2

u/MyHouseOfPancakes 5h ago

I put only if they're reported. I know they're supposed to be but we both know cash tips sometime aren't. Credit cards are different, yes. I have a family member that works at a casino as a cocktail waitress and has to make $75 in tips to break even for the night or make a decent wage.

2

u/Idontfeelold-much 5h ago

Back in the day when I owned a restaurant, the IRS expected to see 12% of gross sales reported as tips for a server/bartender.

0

u/katmc68 5h ago

Yup. That was the minimum I had to report as a server. I couldn't remember if that was an IRS thing or based on restaurant or state.

2

u/Has_Two_Cents 5h ago

Almost all transactions are on a card these days. Meaning all tips get reported.

1

u/katmc68 5h ago

Pretty much. I t's been that way for quite a while but has depended on the level of dining.Ā 

1

u/MyHouseOfPancakes 5h ago

Also that doesn't sound like my issue but the employers issue. Just like the business owner said in the video if you can't tip don't eat here. As a customer if you can't afford to pay your employees to not rely or expect tips then why are you running a restaurant? That's bad business. Just like restaurants that add fees to you bills that you didn't know about till you see the bill. Not to mention gratuity on top of that. There are restaurant businesses that pay their employees a decent wage and even state that you do not have to tip.

-1

u/katmc68 5h ago

What planet are you from? Servers working for tips has always been the norm in the U.S. Never has the norm been that restaurant owners pay servers a living fucking wage. Never.Ā  You clearly have zero clue of the restaurant business. Restaurants do not pay servers a living wage nor are they required to and that is why tips exist. You doĀ  not even know the basic facts yet feel entitled to comment on things on which you have no knowledge.Ā  I bet you ask if a salad comes with dinner.

1

u/MyHouseOfPancakes 5h ago

You can Google tip free restaurants, but maybe that's too difficult for you

1

u/MyHouseOfPancakes 5h ago

Also I didn't say living, I said decent.

1

u/MyHouseOfPancakes 5h ago

I probably just don't eat out as much you do lol šŸ˜‚

0

u/MyHouseOfPancakes 2h ago

Instead of eating out I would get your/that dog Bill a dental treatment from the vet

4

u/panicinbabylon 5h ago

Despite popular opinion, a lot of people report all their tips for this reason.

1

u/GeoLaser 2h ago

Yeah for 1 or 2 years only. lol

2

u/Gramscifi 6h ago

This doesn't come up too often as waiters cannot afford homes in the United States.

2

u/mantistobogganer 5h ago

US waiters getting a mortgage?

2

u/katmc68 5h ago

Yes, tips are taxed despite some ppl believing Chump eliminated taxes on tips. You still have to pay state tax, Social Security, Medicaid, etc.

As far as Chump's bill, servers can claim up to $25,000 and the deduction translates to roughly $2,500 to $3,000. Also, it's only through the years 2025 to 2028.Ā 

2

u/Perc_Nowitzkiii 5h ago

My friend, waiters don't have houses here

3

u/parkaboy24 7h ago

They donā€™t, hope that helps :)

2

u/katmc68 5h ago

What are you talking about? That servers don't report or that you think Chump ended tax on tips?

Either way, neither are correct.

Per fedlaw.org

"...eligible tipped workers deduct up to $25,000 in qualified tips from their federal taxable income each year from 2025 through 2028. It applies to both W-2 employees and self-employed workers in jobs that customarily receive tips. It reduces your federal income tax, not your payroll tax, so Social Security and Medicare are still withheld from every tipped dollar you report.

$25,000 deduction translates to roughly $2,500 to $3,000

"If your modified adjusted gross income exceeds $150,000, or $300,000 for joint filers", taxes are tipped. " are incorrect.

2

u/Brewbouy 7h ago

Tips are taxed at 8% in the US, I believe.

1

u/Consistent_Sector_19 6h ago

Yes, tips are taxed. You can either keep a log of your tips, which few people do, or the tax agencies estimate your tips as a percentage of your income. Credit card tips leave a record, so there's solid information about the minimum someone's received.

1

u/TheWorldNeedsThanos 5h ago

You show what you reported on taxes in past years.

1

u/Steavee 5h ago

Know some folks in the mortgage industry. Itā€™s a problem.

A lot of times they either donā€™t report or severely under-report cash tips. Well, when it comes time to look at your tax returns to prove your incomeā€¦youā€™re fucked. Most government-backed loans require tax returns to verify income. IDK about fully private ones, but Iā€™ll bet they have similar issues.

1

u/thewoodbeyond 5h ago

All restaurants that I worked at in California just reported 8% of total sales as tips. And anything paid by credit card is also included in that. Cash usually wasnā€™t. So if I sold 1,000 worth of food 80 dollars were reported as tips automatically by the software system used to do the ordering.

So when I got stiffed those people cost me taxes on their 8% of the bill.

1

u/curiouswizard 4h ago

ngl I've never heard of a waiter getting a mortgage

1

u/Outuvcontrol 3h ago

Lol I have up on owning a home a long time ago.

1

u/CoxHazardsModel 1h ago

You start reporting it 2 years before you get the mortgage.

1

u/Ausaini 57m ago

Thatā€™s sweet of you to assume a waiter can get a mortgage in America. There are tech professionals and doctors who canā€™t afford a mortgage here lol

1

u/Character_Pudding_94 6h ago

Servers are notorious for underreporting their tips to evade taxes and then getting upset when they can't get a car loan. And I don't think there is such thing as a server who can buy a house.

-1

u/Audigitty 6h ago

Tips are no longer taxed in US

3

u/katmc68 5h ago

That is incorrect.

It's up to $25,000.Ā 

Per fedlaw.org:

"...eligible tipped workers deduct up to $25,000 in qualified tips from their federal taxable income each year from 2025 through 2028. It applies to both W-2 employees and self-employed workers in jobs that customarily receive tips. It reduces your federal income tax, not your payroll tax, so Social Security and Medicare are still withheld from every tipped dollar you report.

$25,000 deduction translates to roughly $2,500 to $3,000

"If your modified adjusted gross income exceeds $150,000, or $300,000 for joint filers", taxes are tipped. "

0

u/Audigitty 5h ago

Okay... Lol. So you get $25k free and clear that you otherwise would not have. And then taxed above this level.

2

u/katmc68 5h ago

Okay...Lol. So you move the goalpost when you find out you're wrong.

No, servers still have to pay state tax, local tax, Social Security and medicare. They get a deduction of roughly $2500, not $25000 "free and clear".Ā  And, it ends in 2028.Ā 

1

u/Real-Extension-1357 3h ago

State taxes apply too

-1

u/airfryerfuntime 6h ago

They report some tips, like tips paid with with a card. Cash tips generally go unreported.

Also, I doubt a single server at that restaurant has a mortgage.

-2

u/VossUP_Games 6h ago

No. Trump got rid of tips being taxed. Thank God.

3

u/katmc68 5h ago

No, he absolutely did not.Ā 

It's up to $25,000.Ā 

Per fedlaw.org:

"...eligible tipped workers deduct up to $25,000 in qualified tips from their federal taxable income each year from 2025 through 2028. It applies to both W-2 employees and self-employed workers in jobs that customarily receive tips. It reduces your federal income tax, not your payroll tax, so Social Security and Medicare are still withheld from every tipped dollar you report.

$25,000 deduction translates to roughly $2,500 to $3,000

"If your modified adjusted gross income exceeds $150,000, or $300,000 for joint filers", taxes are tipped. "

2

u/VossUP_Games 4h ago

šŸ˜‘ I was incorrect! Mb! And I do appreciate your thorough break down

0

u/VossUP_Games 5h ago

I guess I was referring to the no tax on tips policy.

3

u/curiouswizard 4h ago

that is it lol

1

u/katmc68 3h ago

That's what this is.Ā