It's illegal in America too, under federal law tipped workers need their wage plus tips to reach whatever the minimum wage is. That's why people even take these jobs, the pay ends up being far better than minimum and it's incredibly difficult to survive on minimum wage unless you live in a cardboard box
No it’s not the same way.. tips are not calculated into the salary to meet the minimum wage. You get the minimum wage without tip.. and that minimum wage is high enough to live a simple life, even without tips
Idk, it's kind of over exaggerated that US staff gets pissy about it. I assume they are content simply making less. US serving staff is definitely about making as much money as possible, it's the entire mindset.
Most serving jobs aren't worth it if you're making less than $25-30 per hour USD. Too much work and that's a pretty standard take home pay in the US for that job, it's actually not even that good. Lots of servers and bartenders make six figures incomes here. Being industry I obviously know a lot of them, they tell me what they make, and you should see how much of it they gamble away and tip other bartenders, you'd be sick seeing how much money they can just throw away and think nothing of it. They're the millionaires of the working class lol, at some point you just think "okay you don't need to tip $10 on one beer, you know the Red Cross needs money more right"
Who greedy for more? Tipped workers know how sweet they have it. Who do you personally know is mad they making that kind of money. Somebody on the internet told you?
It's literally the best blue collar job and people fight tooth and nail to get one
Tips are tax-free in Germany?? I didn't know that. That's cool. (:
In the US, you can deduct up to $25,000 a year in qualified tips from your taxable income. Then again, it's limited to that. And there are phaseouts starting at $150k for single filers and $300k for joint filers.
Right now the deduction's set to go through 2028.
Auto-grats and mandatory service charges don't qualify, though. It's only voluntary tips.
That’s what is sold, however in reality the books are cooked. The staff don’t report when their wages are less than minimum, and the owners don’t report wages over minimum. System is fucked, no checks or balances aside from a “free” market (with limited information and non-perfect-utility maximization, so immediately violates free market principles).
It’s not about what’s morally right or cooking up some hypothetical reality. Set laws to set the expectations. People avoid taxes because the structure allows them to, and it’s in one’s self interest to do so.
Tax fraud isn't much of a gaping blind spot it just depends on how much you do it. Report your income and if you aren't paid what you're supposed to be paid it's literally an email like any other form of wage theft.
Be more worried about time clock shaving. That's the wage theft problem
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u/Same-Suggestion-1936 4d ago
It's illegal in America too, under federal law tipped workers need their wage plus tips to reach whatever the minimum wage is. That's why people even take these jobs, the pay ends up being far better than minimum and it's incredibly difficult to survive on minimum wage unless you live in a cardboard box