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Tip wage withholding
Posted on 1/25/19 at 10:03 am
Posted on 1/25/19 at 10:03 am
My employer pooled tips and paid them out weekly. They withheld from nontip wages but not tipped wages. Isn't the employer obligated to withhold from tipped wages too? Now I owe unexpected taxes. What's my next step? Do I bite the bullet and pay up or am I able to fight it with the employer?
3
Posted on 1/25/19 at 10:09 am to ccstutters
You owe taxes on your income. It is your responsibility, not your employer.
Posted on 1/25/19 at 10:15 am to ccstutters
How would you fight it with your employer? Everyone has to pay taxes on their income.
Look at it this way- you got an interest free loan from the government for a year.
Look at it this way- you got an interest free loan from the government for a year.
Posted on 1/25/19 at 10:16 am to iAmBatman
I realize that and have every intent on paying. Does nothing happen to the employer who failed to fulfill their obligations to withhold?
Posted on 1/25/19 at 10:36 am to ccstutters
You can approach your employer and ask about it. From what I just researched, they are required to withold your normal wotholdings from the tip portion of your check.
However, I am certainly not an accountant or ta expert so take it with a grain of salt.
However, I am certainly not an accountant or ta expert so take it with a grain of salt.
Posted on 1/25/19 at 10:49 am to ccstutters
quote:
Does nothing happen to the employer who failed to fulfill their obligations to withhold?
What would you like your employer to do in order to fix this situation?
What do you want their punishment to be?
Not trying to be an arse, I'm just genuinely wondering how you would like to see this fixed.
Posted on 1/25/19 at 11:15 am to ccstutters
Witholdings are a best guess on end of the year taxes. You best bet is to go single and none on the payroll to help compensate on tios
Posted on 1/25/19 at 1:45 pm to ccstutters
quote:Yes, nothing happens. It's up to you to estimate how much you think you'll owe on your projected tips and adjust your withholding amount accordingly.
Does nothing happen to the employer who failed to fulfill their obligations to withhold?
Or, you can file a quarterly estimated tax payment on the actual amount of tips you received that quarter.
Quarterly estimated payments are due on April 15, June 15, September 15 and January 15 of the next year. You can find the form to use to file estimated quarterly payments at www.irs.gov.
Posted on 1/25/19 at 2:46 pm to LSURussian
There are two types of tips. Credit Card and Cash.
Credit Card tips usually go on your paycheck and are taxed.
Cash tips are in the form of cash and go in your pocket each shift.
Most restaurant will let you declare cash tips everyday and this will reflect on your paycheck and taxes will be drawn upon your declared tip amount. If you don't declare any cash tips you should settle up with the IRS when filing taxes.... or you can choose to never declare tips and never report to the IRS that you made cash tips like 99% of other restaurant workers do.
Source : I do restaurant payroll.
EDIT - I see where you say they didn't withhold taxes out of tips they paid out. That is strange, but still your responsibility to notice these things and make the appropriate adjustments to your own withholdings.
Credit Card tips usually go on your paycheck and are taxed.
Cash tips are in the form of cash and go in your pocket each shift.
Most restaurant will let you declare cash tips everyday and this will reflect on your paycheck and taxes will be drawn upon your declared tip amount. If you don't declare any cash tips you should settle up with the IRS when filing taxes.... or you can choose to never declare tips and never report to the IRS that you made cash tips like 99% of other restaurant workers do.
Source : I do restaurant payroll.
EDIT - I see where you say they didn't withhold taxes out of tips they paid out. That is strange, but still your responsibility to notice these things and make the appropriate adjustments to your own withholdings.
This post was edited on 1/25/19 at 2:53 pm
Posted on 1/25/19 at 4:02 pm to Taffeta
I too never saw a situation where the employer put tips on a paycheck and didn’t withhold the taxes.
I don’t understand because did the employer take no taxes out? Or just from the hourly wage? Usually if your a tipped employee your hourly wage goes completely to paying taxes and you don’t owe much at the end of the year after that. Is La server/bartender rate still in the $2 range? In Florida it’s around $5
I don’t understand because did the employer take no taxes out? Or just from the hourly wage? Usually if your a tipped employee your hourly wage goes completely to paying taxes and you don’t owe much at the end of the year after that. Is La server/bartender rate still in the $2 range? In Florida it’s around $5
Posted on 1/25/19 at 4:17 pm to Jp1LSU
quote:
I too never saw a situation where the employer put tips on a paycheck and didn’t withhold the taxes.
I don’t understand because did the employer take no taxes out? Or just from the hourly wage? Usually if your a tipped employee your hourly wage goes completely to paying taxes and you don’t owe much at the end of the year after that. Is La server/bartender rate still in the $2 range? In Florida it’s around $5
We pay our servers 2.13 and bar 5.00
Posted on 1/29/19 at 11:19 am to Taffeta
I’ve only ever worked at two places in Florida but I am pretty sure servers get $4.86 or something like that. I don’t pay attention to the number. Hard to believe Louisiana hasn’t gone up at all in such a long time.
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