Tips & Taxes – The misconception about IRS tip reporting.

There is a misconception that servers are required to report their tips as at least 8% of their sales revenue. 8% is simply a bottom line that the IRS uses when attempting to determine how much a server earned in tips over the year. The IRS does not expect to be paid 8% of a server’s sales as tax – that would be akin to taxing the customer for their bill… [...]

The Importance of Claiming all Your Tips

New employees to the restaurant industry always ask me how much of my tips should I claim and do I have to claim them all. The answer is very easy. “You must claim them all… [...]