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A comment on He thought tending bar sounded like fun. Then the entire kitchen staff quit. Parent comment

Re:He thought tending bar sounded like fun. Then the entire ... by Ekaros on Wednesday November 29, 2023 @01:59AM (#38456409)
Why not? Why shouldn't sales tax or whatever tax also be fully paid for each received tip? It is not like other business gets to avoid taxes.
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Re:He thought tending bar sounded like fun. Then the entire ... by woodruffw on Wednesday November 29, 2023 @02:12AM (#38456478)
In principle: the money goes completely to the employee(s) being tipped, so it doesn’t make sense to tax the business for money it doesn’t receive.
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Re:He thought tending bar sounded like fun. Then the entire ... by Ekaros on Wednesday November 29, 2023 @02:19AM (#38456521)
Why should that matter? Let's say you run software consulting. And most of the price goes to labour. Would that not mean that sales tax should only be applied to part going to business itself?
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Re:He thought tending bar sounded like fun. Then the entire ... by woodruffw on Wednesday November 29, 2023 @05:39AM (#38457787)
Because sales tax is a tax on a sale, not on your employees' wages. Payroll and income tax (among others) apply to wages.

Whether payroll tax applies to tips depends on the municipality, but income tax always does.

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