Re:It's not a labor shortage – it's a wage and workers right...
by tchaffee on Sunday September 05, 2021 @03:27PM
(#28427026)
That's a naive understanding of what's really happening at most restaurants. Cash tips are almost always significantly under-reported. It's nowhere near as low as "tip jar on the counter" amounts.
Re:It's not a labor shortage – it's a wage and workers right...
by b3morales on Sunday September 05, 2021 @04:27PM
(#28427467)
Yes, of course there is underreporting; nothing in my comment says otherwise.
I'm not following your point. Since some people cheat on their taxes, they shouldn't be paid wages instead, because then they wouldn't be able to underreport as easily?
Re:It's not a labor shortage – it's a wage and workers right...
by tchaffee on Sunday September 05, 2021 @04:46PM
(#28427624)
My point was that the under-reporting is in much larger amounts than your claim that "You can get away with not reporting it if it's a few extra bucks from a jar on a counter."
> Since some people cheat on their taxes, they shouldn't be paid wages instead, because then they wouldn't be able to underreport as easily?
How did you get this from what I said? I said nothing to that effect. Not even close. My point was very simple.
Tips are income already, and are taxed as such. You can get away with not reporting it if it's a few extra bucks from a jar on a counter. But if you're a "tipped employee" (and thus eligible to be paid sub-minimum wage) you report them to your employer, who then reports them to the IRS, and does tax withholding same as for wages.