Originally Posted by
Visconti
I would object too. Not making any judgements or assumptions here, but that's probably a very tax efficient $80k too. I recall some momentum about making a transition to zero-tip dining, but no idea how that's working out.
If I understand correctly, servers have to share a substantial portion of their tips with the backroom (bell, kitchen, etc.). In addition the IRS presumes there is a certain amount of tip income based on bill total: A tip-stiffed wait person may have to pay taxes on presumed income even if they got stiff ed the tip (unless it can be proven).
Lots of rules here
https://www.irs.gov/businesses/small...-and-reporting