Server tip claiming (employment, income, taxes)

[JTM9504]

I recently started a new job as a server at a local favorite. I make 2.13/hr plus tips, the standard wages for a server these days. I understabd the whole tip claiming and I believe honesty is the best approach in claiming tips. However, my employer has a formula they come up with to claim our tips. It's not based on a percentage of sales, which is stated on the daily cashout reports and has been within .50 of my tips each night so far. Instead they use 4.42 X hrs worked. This formula has not been accurate and has forced me to lie about my earnings, claiming more than I actually made. The past 4 nights I've claimed a total of 88.10 in tips when I only made 60. That's 28 dollars I'll pay taxes for that I dindt even make. On top of that my child support is based off my income, and this formula gives CS services an inaccurate total to work with. All in all it's only covering the restaurant's tracks in labor costs since they have to pay me the difference if my tips don't add up to minimum wage. Can they legally force me to lie about my tips with a homemade formula? Who can I seek assistance in this from?

[Beretta]

Originally Posted by JTM9504

I recently started a new job as a server at a local favorite. I make 2.13/hr plus tips, the standard wages for a server these days. I understabd the whole tip claiming and I believe honesty is the best approach in claiming tips. However, my employer has a formula they come up with to claim our tips. It's not based on a percentage of sales, which is stated on the daily cashout reports and has been within .50 of my tips each night so far. Instead they use 4.42 X hrs worked. This formula has not been accurate and has forced me to lie about my earnings, claiming more than I actually made. The past 4 nights I've claimed a total of 88.10 in tips when I only made 60. That's 28 dollars I'll pay taxes for that I dindt even make. On top of that my child support is based off my income, and this formula gives CS services an inaccurate total to work with. All in all it's only covering the restaurant's tracks in labor costs since they have to pay me the difference if my tips don't add up to minimum wage. Can they legally force me to lie about my tips with a homemade formula? Who can I seek assistance in this from?

I assume that you are in TN. I would suggest calling the state and inquiring. You may also get some replies on the Work and Employment forum. We'll see how replies go today and may move this post over there this evening. Here is a link to the State of TN Dept of Labor. Welcome - Tennessee Department of Labor and Workforce Development

[strumpeace]

Hi, JTM --

I worked as a server at a number of restaurants in West TN for many, many (too many) years. You're in a catch-22. Here's the deal --

Between the $2.13 and your tips, you have to cover minimum wage. If you don't, the restaurant has to pay you the difference. Having to do that makes restaurant managers and owners unhappy. If this happens consistently, you can--quite honestly--expect to be canned. That's just the way it works. Most restaurants work on shoestring budgets, often down to the penny. If anything--or anyone--causes that budget to change, that thing--or person--is typically moved aside. I don't want to sound like an alarmist, but I've seen it happen time and again.

Now let's say that you're making more than the restaurant is reporting. Technically, of course, the restaurant is supposed to accurately report your earnings. However, in the end, it doesn't matter all that much because you are responsible for accurately filing your own tax return each year, and your numbers do not have to line up with the restaurant's numbers. In fact, iirc, there is a line on the 1040 for that exact purpose -- unreported tips and wages.

I wish you good luck. Waiting tables is not easy. With the economy in such bad shape and people pinching every penny, it's even harder. You have to go over and above just to break even. I wish I could offer some advice on how to handle your situation, but as I wrote earlier, it's a catch-22.

Best wishes.