Monday, November 5, 2012 2:42:31 PM
Tipping a server is a social norm. In other words, it is not required but socially expected. So much so that employers are able to pay them just a fraction of minimum wage. In America (and many other places) if you do not tip for decent service, you are a douche. You are effectively stealing from your server.
And yes, servers DO pay taxes on their tips. Many try to under-report their tips, but the IRS has what they call "McWater's formula" to determine, and tax you on, the amount you SHOULD have made, whether you did or not. (At least that`s what they told me in the 80`s when they hit me for over $2000 in "backtaxes and penalties" for claiming what I actually made instead of what their formula came up with.)
Monday, November 5, 2012 12:32:37 PM
@carmium Here is a list of wages for tipped employees by state. I don't know how they get away with being so different or why we don`t have different tipping etiquette for each state.