Re: Last night was "surf and coop."

On 3/8/2025 9:27 PM, Jill McQuown wrote:

On 3/8/2025 8:38 PM, Ed P wrote:

Most tips are on credit card.  Cash tips are reported every night for tax purposes.

 Doesn't matter how you tip.  Cash or credit card, tips are reported by restaurants based on server sales entered into the cash register/order management system.  You can meet someone out in the parking lot and hand them $20 as a tip but it doesn't matter.  Even if no one else tipped them that night what gets reported to the IRS is calculated based on sales.  They assume 15% and deduct it from the paycheck accordingly.
 Jill

Maybe.  But in their case, 5% of sales is taken from their tips for the food runners so you cannot assume 15% in that situation.  They would be taxed twice.