Tipped Employees

Never worked as a server, so what I have to say is only based on what I've heard other servers say, but I think I have an explanation.At least in some states, servers are theoretically required to report the amount of their tips to their employers, who then withhold based on the total of tips plus hourly wage. If they earn enough in tips, the total amount of withholding for all taxes, federal, FICA, SS and state, if any, could easily amount to more than the $2.13 they earn hourly. (BTW, that $2.13 is a federal minimum, some states require a higher amount than that.) In such circumstances, the check the employee receives would be zeroed out, but it should reflect the withholdings that the employer makes on the employee's behalf.

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Ridicule is the only weapon which can be used against unintelligible propositions. Ideas must be distinct before reason can act upon them; and no man ever had a distinct idea of the trinity. It is the mere Abracadabra of the mountebanks calling themselves the priests of Jesus. -- Thomas JeffersonFor we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus -- and non-believers. -- Barack ObamaWe see monsters where science shows us windmills. -- Phat

Correct. And, they probably wouldn't remain in that job for long unless that situation changed substantially.

Look at it this way:If the employer had to pay a reasonable wage, they would just add that cost to the menu prices, passing it on to the consumer anyway. Plus, not only would they have to pay more in wages, that would also increase the amount they would have to pay for their share of the contribution to SS benefits. Instead, the servers end up having to pay that amount themselves. So, this arrangement saves the consumer at the expense of the server. And that's not even taking into account that the consumer payment is voluntary to begin with.I am curious about one thing: how do servers feel about customers who stiff on tips because of bad service?

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Ridicule is the only weapon which can be used against unintelligible propositions. Ideas must be distinct before reason can act upon them; and no man ever had a distinct idea of the trinity. It is the mere Abracadabra of the mountebanks calling themselves the priests of Jesus. -- Thomas JeffersonFor we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus -- and non-believers. -- Barack ObamaWe see monsters where science shows us windmills. -- Phat

Ah, I did not know that. Thanks.

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Ridicule is the only weapon which can be used against unintelligible propositions. Ideas must be distinct before reason can act upon them; and no man ever had a distinct idea of the trinity. It is the mere Abracadabra of the mountebanks calling themselves the priests of Jesus. -- Thomas JeffersonFor we know that our patchwork heritage is a strength, not a weakness. We are a nation of Christians and Muslims, Jews and Hindus -- and non-believers. -- Barack ObamaWe see monsters where science shows us windmills. -- Phat