17 Feb 2023 1:42 pm
Actually, I know a bit about this. I have a friend, who took early retirement to open a small restaurant. He said that the restaurants are scamming employees by insisting that they have tips.sootedupCyndi » 08 Feb 2023, 12:37 pm » wrote: ↑ Bidens new IRS planning to crack down on waitress tips.
" nobody making under 400 k will pay more in taxes"
Kick the clown out.
Tip the waitress in EGGS!
Service people are only required to declare 8% of their sales receipts for taxes. And that is payroll taxes. The restaurants encourage the servers to under declare their tips so the restaurants don't have to pay their fair share of the payroll taxes. My daughter worked in a restaurant for a while. The owner would come out with their tip sheets filled out for 10%.
If a server didn't declare $20,000, per year, in tips, the business scams $1530 from the employee's SS and Medicare funds. If a single restaurant has 20+ servers, this would be a considerable amount of money in the owner's wallet. Restaurant chains with thousands of employees would make a considerable amount of profit in not paying the SS and Medicare on the employees.
Since the employee didn't pay either, there is a total of $3060, per year, missing from their Social Security Retirement fund and Medicare. Over a 40 year period this could mean over $100,000 missing from their SS Retirement. Since these people's SS check is dependent on the amount they put in; they go into retirement with tiny checks.
I know elderly people, who have worked their entire life in food service, and are trying to live on $700 Social Security, are on Foodstamps, and living in Section 8 housing. All because the restaurant industry is promoting this tip scam on its employees.