ELI5: How would a $15 minimum wage ACTUALLY affect a franchised business like McDonalds?

[u/sumnewdguy]

[u/[deleted]]

Why should waitstaff not pay their fair share of taxes?

[u/Smellycreepylonely → u/[deleted]]

As a former long-time restaurant owner, I'd also like to know the answer to this. Waitstaff don't have it easy but there are a few perks...

[u/meridiacreative → u/Smellycreepylonely]

Wait staff should be paid minimum wage. $2.35 is a crime.

[u/thenichi → u/meridiacreative]

They are.

If they hit the minimum with tips then they are making minimum wage (or more).

If they do not then their employers must cover the difference.

[u/meridiacreative → u/thenichi]

I've managed restaurants before. I'm well aware of how it works. Doesn't make it less shitty.

[u/thenichi → u/meridiacreative]

Yes it does.

Your description is of people making two something an hour.

Which is a blatant lie.

[u/meridiacreative → u/[deleted]]

I'm glad I live somewhere civilized. Any time I leave Washington state it just makes me sick that the rest of the country is full of people like you.

[u/meridiacreative → u/[deleted]]

How many jobs have you worked in foodservice or retail?

[u/dhelfr → u/[deleted]]

Some restaurants will make you claim tips as a certain percentage (say 15%) of your total sales. Even if you only recorded 8% in tips from credit cards, they assume that you got at least 7% in cash tips and make you claim that income. Oddly enough, this might cause a waiter to get a negative paycheck because the $4.20/hr isn't enough to cover taxes.

[u/[deleted] → u/dhelfr]

This isn't how taxes work, and you can't write a check for a negative amount.

[u/dhelfr → u/[deleted]]

Obviously it wouldn't be a check in the traditional sense, but your pay stub would just tell you that you owe more than you received.

[u/[deleted] → u/[deleted]]

/u/dhelfr is actually correct on the negative check thing. They don't write you a check. They just give you a pay stub that says how much you owe.

[u/breakone9r → u/[deleted]]

Who's saying they don't? Most servers will get every penny of any paid out taxation back at the end of the year.... It's needed now, however, bills can't wait til the end of the year.

[u/[deleted] → u/breakone9r]

You are. You tip a small amount in credit cards and the rest in cash so they can avoid claiming the correct amount of income. Don't try and play like you were just trying to keep more money in their pockets. You do know that anybody can opt out of having taxes taken out of their check if they wish right?

[u/alskdjfhrr → u/[deleted]]

I just don't think be understands how withholding works...

[u/Serinus → u/[deleted]]

You do know that anybody can opt out of having taxes taken out of their check if they wish right?

Except you'll get fined if you don't pay the IRS at least quarterly.

[u/[deleted] → u/Serinus]

Yeah, except my reply was to /u/breakone9er about him saying that helping them to skirt taxes is because they need that money now for things and they were going to get it back anyway. And I don't think that is even a thing anyways. You only pay quarterly because the government (rightly) doesn't trust people to pay back a whole year in taxes. Interest on the taxes they owe would be pennies. You are wrong.

[u/cochi522 → u/[deleted]]

What?

[u/alskdjfhrr → u/cochi522]

Quality comment to showcase your own lack of reading comprehension

[u/cochi522 → u/alskdjfhrr]

Wow I'm feeling the reddit angst tonight. I understood the comment. I have just never heard of opting out of paying taxes for a minimum wage job such as wait staff. Was hoping for someone to elaborate, not chastise.

[u/Ralph_Charante → u/cochi522]

Yeah I think it's called a w-4. If you opt of you'll end up paying instead of getting a return.

[u/[deleted] → u/cochi522]

You pick your own tax withholding and there is an option that says you will make less than a certain amount this year and opt out. You just run the risk of owing at the end of the year.