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Help, Employer claiming I make more money than I actually do

Posted on 2/1/12 at 3:28 pm
Posted by reluctantBR
Member since Mar 2009
1779 posts
Posted on 2/1/12 at 3:28 pm
I work as a server at a restaurant, it is pretty standard for servers to pay a percentage of sales back to the house for bus help and hostesses. The problem is that my employer is claiming the full amount of my tips, without subtracting the tip share that I pay. It equals out to a significant amount of money, which I pay taxes on and may even put me in a higher bracket.

I can not figure out what to do.

p.s. I am typically a standard deduction when preparing taxes.
Posted by Layabout
Baton Rouge
Member since Jul 2011
11082 posts
Posted on 2/1/12 at 3:59 pm to
Join a union with the other employees who are getting screwed.
Posted by Catman88
Baton Rouge, LA
Member since Dec 2004
49125 posts
Posted on 2/1/12 at 4:29 pm to
Do you know exactly how much you tipped out?
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17276 posts
Posted on 2/1/12 at 4:41 pm to
Send everyone you tipped out a 1099

claim it as a cost of business

Sounds to me like the employer paid you, you did what you wanted with the money and tipped out others, that does not change how much the employer gave you
Posted by Tigerpaw123
Louisiana
Member since Mar 2007
17276 posts
Posted on 2/1/12 at 4:42 pm to
Did you claim every dollar of cash tips you got? If not I would not be making a stink over this
Posted by TulaneTigerFan
Seattle
Member since Sep 2005
35856 posts
Posted on 2/1/12 at 6:05 pm to
quote:

Sounds to me like the employer paid you, you did what you wanted with the money and tipped out others, that does not change how much the employer gave you


Have you ever worked in a restaurant? Most handle the "tip outs" to the bus boys, etc themselves at the end of each shift when you close out with the manager
Posted by reluctantBR
Member since Mar 2009
1779 posts
Posted on 2/1/12 at 10:07 pm to
Yes I know exactly how much I tipped out. It is a set percentage that is mandatory. It is collected by the house and they distribute it to the other employees. I have all of the paperwork to prove that I never received the money.

As far as cash goes, we automatically claim a 10% tip on all cash tickets.
Posted by foshizzle
Washington DC metro
Member since Mar 2008
40599 posts
Posted on 2/1/12 at 10:16 pm to
quote:

Yes I know exactly how much I tipped out. It is a set percentage that is mandatory. It is collected by the house and they distribute it to the other employees. I have all of the paperwork to prove that I never received the money.


If you really truly have all the paperwork then you should be golden.

Of course, this will likely only matter if you get audited. But if that happens and you have the paperwork to prove your point you should be fine. Whether it is worth the time and effort is a different question.
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