how to tip
If you do this get the fuck off my blog
Please understand that they gave a 33% tip, in cash instead of on a card, to increase the odds that the server could keep all of it.
What they mean by ‘taxation is theft’ is that servers are taxed on the ASSUMPTION that they will be tipped. If they don’t make those tips, they get taxed on them anyway. It is literally theft. By leaving cash and not writing it on the receipt, they’ve allowed the server the option of quietly slipping that 20 into their pocket and therefore not being taxed on it.
tips from credit cards are automatically taxed bc they’re in a computerized system and we have to claim them as income, cash tips are not accounted for by this system and are basically invisible income.
say I do 300$ in sales on Thursday, and I received 70$ in credit card tips and 30$ cash. I have to claim at least 20% of my sales in tips, so I claim 70.01$ (so I tell the computer that I only made a penny in cash).
I also do 300$ in sales on Friday, but this time I only have 30$ in credit card tips and 70$ cash. this day I can claim 60$ and so that additional 10$ is untaxed income.
I know it seems shitty and shady but if you claim enough in tips throughout the week it can a) move you into a new tax bracket and b) reduce your paycheck to 0 (because in most states base wages are 2.13$/hr and once you hit minimum wage with your tips you lose even that) (it’s a little hard to explain but basically if you make more than 5.12$/hr in tips they’ll start garnishing wages bc you’re making more than minimum wage). so by having cash tips, we can continue to make hourly wages, we still pay our fair amount in taxes, and we have something to take home at the end of the week.
(via anneeiffel)
