Originally Posted by
pinniped
In short, I *don't* think this is how it really works, but I've never worked as a waiter so I don't really know.
Let's say a waiter sells $1k of food/drink during the shift. At the end of the night, the waiter will claim his tips. If at the end of the year, less than (depending on some factors) 13-15% is declared, there will be problems.
I posted this recently... when I was in college I worked at the American Cafe in Georgetown, DC. For a period prior to my being there the IRS determined not enough was withheld. They came in and met with staff telling them how much each owed. One waitress, Dorinda, had end of night receipts from every shift showing she had declared everything. Nobody else did, so they owed. After that, I always kept my receipt at the end of the night. Now there is computerized ordering that tracks this so there isn't even an opportunity to fudge.
Bottom line: your expensive wine is being included in the waiter's taxable amount, as is anything your order. Not leaving a tip costs a server because the server is still paying tax. That is how it works.