plus you pay taxes on EXPECTED tips - if you declare less than 15% tips on your tax return you will be charged for under reporting income.[/QUOTE]

From the IRS: "If you are a large food or beverage establishment (more than 10 employees on a typical day and food or beverages consumed on the premises), you are required to allocate tips if the total tips reported to you are less than 8% of gross sales."

Servers must report tips of 8% (or more) of gross sales, or their employer will come under the scrutiny of the IRS. In recent years the IRS has been trying to hit restaurants with more FICA and Medicare taxes which the restaurant (and worker) must pay on tip income. Many servers are not happy that they must now report almost 1/2 of their income. A friend that's a waitress says to always leaves the tip in cash, even if paying the bill with a credit card.