Originally Posted by
Analise
How can that be? Is there a special W2 form, for waiters to submit to the IRS, geared specifically for the restaurant industry that has the restaurant populate on the form what the gross sales were (or is it net?) for the entire year at that particular restaurant or chain of restaurants?
I'd like to know from accountants and/or waiters themselves here on this thread. I'd also like to see that tax form too. Link?
When I was waitressing at a pool hall a decade ago and made $2.13/hr (selling mostly drinks, with limited bar food) the employer, a chain, reported tips to the IRS by some formula like 10% of the sales divided by the # of staff, or something of that nature. Even though I made less in tips than most restaurant waiters or bartenders, this 'reported' amount was less than half of what I actually made in tips. Maybe there are other ways of reporting tips to the IRS by the establishment, but I think the waiter comes out way ahead on the taxes. Of course, the waiter can be honest and self-report all his tips, but that never happens.
I don't like the idea of tipping and hold strong against the increasing tipping culture at hotels, but I always tip at restaurants because "that's just how things are done." If you don't like it, please lobby on behalf of the servers to have laws implemented, stop going to restaurants, etc. but don't take it out on the waiter.