Originally Posted by
Mr. Vker
Waiters are taxed on a minimum of 12% of goods sold. If actual tips are more than 12%-which one hopes-you claim actual.(At least when I was a waiter in college.) If we made less in tips-too bad. You were taxed at 12%. Tipping under when one received good service costs the waiter $$$.
Well not really,
If you got taxed on 12% at your tax rate of 20% then you would only cost money to the waiter if you tipped less than 2.5%.