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Great idea. San Fran servers & bartenders should have ALL their tips fully taxed, pooled & then split "equitably" with the chefs, cooks, dishwashers et al. If they think socialism is great, this will give them a real taste of it.
Easy enough to tax when it's a part of the bill.
Most restaurants pool tips and/ or require their wait staff to " tip out" based on the value of the check.
When a wait person gets stiffed, they are still required to tip out.
Chefs/ cooks rarely participate in the tipping pool.
Including the cost of service in the price of food or adding a service charge is how the majority of the world handles employee compensation.
Tell that to the workers who will now pay tax on all that reported income.
"Negligible" ?
On average, wait staff under report by 50% their tips.
Paying full taxes on all of it now (including FICA) is hardly negligible.
The city does not collect taxes on wages - so this is not "all about taxes - nothing else", and this 20% surcharge IS NOT A LAW.
I don't support tax dodgers and we shouldn't have a situation where restaurants pay $2.13/hour (Texas) and employees have to make up the rest of their income in unreported tips.
The city does not collect taxes on wages - so this is not "all about taxes - nothing else", and this 20% surcharge IS NOT A LAW.
I don't support tax dodgers and we shouldn't have a situation where restaurants pay $2.13/hour (Texas) and employees have to make up the rest of their income in unreported tips.
The city does not collect taxes on wages - so this is not "all about taxes - nothing else", and this 20% surcharge IS NOT A LAW.
I don't support tax dodgers and we shouldn't have a situation where restaurants pay $2.13/hour (Texas) and employees have to make up the rest of their income in unreported tips.
The IRS reports that only about 50% of tips are reported as income.
No, it's not "all about taxes" but the workers will be paying more of them now.
Please explain where I am wrong. You are claiming that the 20% surcharge is a law?
It is a service charge that will be doled out equally among all employees resulting in higher wages for some and lower wages for others.
Yes it is reportable income; it always was but it was up to the worker to report it.
Law has nothing to do with wages.
This is a mechanism where all revenue to the worker will now be reported to the city, state and local governments as wages by the restaurant.
5 Bay Area restaurants taking tips off table, adding surcharge - SFGate
One major shift will be in reporting tips for tax purposes. Generally speaking, cash tips have a tendency to go unreported among restaurant servers. Once the service charge becomes an official line item on a receipt, people will be accountable. Hoffman said employees at Comal will not see a change in their income if they have been declaring all of their tips.
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