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kubabooba OP t1_iu3aeh9 wrote

Reply to comment by iceflame1211 in Would you Tip the same or at all, if the service industry workers earned states minimum wage or more. That be the case if the Question D in Portland passes. by kubabooba

Sorry I had a hard time wording the previous question. Let me try again. So tip workers are supposed to claim their tips on taxes because they are a tip credit worker. Would they be able to claim tips in the same way if they were not a tip credit worker and just an hourly employee.

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iceflame1211 t1_iu3aum2 wrote

>So tip workers are supposed to claim their tips on taxes because they are a tip credit worker

Tip credit workers essentially claim all of their tips after every shift, but at least every pay period. The employer needs to know if they made above minimum wage. If I worked a 5 hour shift at $13/hr, when I clock out I'd tell them I made $10 or $100. Both would be on my paycheck, in different categories, and both would be included on my W-2 at the end of the year.

If they were "just an hourly employee", then they probably wouldn't make tips. If you mean what if they earned minimum wage hourly + tips, then they'd be expected to claim tips in the same way when they earned tipped wage + tips. Any worker in any field, like a hair stylist or taxi driver, who is in a habitually tipped position, is supposed to legally claim all of their tips as income.

[edit] this is assuming by "tip credit worker" you mean "minimum tipped wage worker"... which again, nuances, but those can be different things =)

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