Viewing a single comment thread. View all comments

Playful-Translator49 t1_j787cvw wrote

Reply to comment by Gators1992 in Mandatory Tip for Take-Out? by DCcatdad09

I think it’s partly how everything is taxed, adding 20% to the total would be taxed differently than 20% as tips as the tax for that is passed to the employee generally.

2

Gators1992 t1_j7nfjik wrote

I think it's the same to the employee, whether wages or tip income would be taxed as ordinary income. Not positive. If there are cash tips that aren't reported though of course it's probably 0% except for that one honest person. Who uses cash these days though?

1