Originally Posted by
glbltvlr
The IRS won that argument long ago. They set certain levels of assumed tips for a given restaurant type, with a minimum of 8%. The restaurant has to keep track of tickets by employee and report ticket totals by employee to the IRS.
https://www.irs.gov/businesses/small...urant-tax-tips
There's a big gap between the traditional 15-25% pre-tax tipping range and 8% of the gross ticket (equivalent to 8-10% pre-tax) being reported to the IRS.