Originally Posted by
djk7
Is it really common for restaurants to withhold CC tips like this? Where my daughter works, they are paid cash at the end of the shift for CC tips.
Servers certainly appreciate cash tips as they tend to not get reported on W-2s, but I don't think they really care if you give them a tenner vs. breaking it up into smaller bills. Cash tips aren't reported for each transaction, they are (under)reported at the end of the shift.
On a related topic, it's worth noting too that many or most restaurants keep their servers part time to avoid having to give bennies.
Perhaps it's changed; all I know is what was shared with me. *shrugs* Or perhaps it was peculiar to that particular restaurant brand (not just that restaurant, but the overseeing company, like Darden over Red Lobster et al).
I always split the tip so part is held back and part is reported - because the manager definitely has a general idea of how much should be circulating out there. So if I can assist in their underreporting at the end of the shift so be it - if the service was overly stellar.
And to the other poster: the IRS is as corrupt as Congress and I shall despise them as such.
