Now imagine what you’d learn if the fake bills that guy handed you was your total take home compensation for that job.
Just imagine it!
Since when? The IRS taxes your tips as part of your regular income. As reported by your employer, or if your employer doesn’t report the tip portion by you.
Common practice is as follows. Since credit tips are recorded and easily trackable, these are reported in full on your w-2. As part of regular income rolled in with your hourly (which largely disappears to taxes so the tips are the whole shebang, I actually have a $0.00 pay check somewhere and the pay stub to match I kept for funsies). Cash tips are where it varies. Some places require you to record every cent, and they report it accurately. Witholding the taxes from your wage and credit tips. Some places will report a fixed % of cash tips based on sales, or a fixed whole number every pay period. And withhold it from your credit tips and wages. In corporate places this may be based on the tip average as generated by the POS system, or a percentage of food sales. Either way the goal is to report a number below the actual amount of cash tips. Most places, especially non-corporate places. Simply let you walk out with your cash tips, and leave it to you to report them to the IRS or not.
Withholding based on the food/drink sales directly. Or purely based on sales with no recourse to keeping it within the bounds of actual tips generated would be highly illegal. The IRS doesn’t look kindly on it. And over taxing restaurant employees often ends up with huge fines from the IRS and payouts to employees directed by the labor department. You’re paying your employees wages into the IRS in excess of whats owed and in the absence of evidence of income to justify it. Against their wishes. Its also an occasional method of garnishing tips. Your scum bag employer withholds more than he should, based on volume of sales. Claiming he has to because of all those tips you’re making. Then he just sort of doesn’t send that money to the government.
It isn’t exactly graciousness. Its usually the only compensation these people see. If you don’t tip you are basically telling a person that they don’t deserve to be paid for the work they just did. And relying on other patrons to pay them anyway.
The US government disagrees with you. FOH restaurant workers aren’t even typically eligible for the minimum wage here. Or sick time. Among other things.