this post was submitted on 28 Jun 2023
243 points (96.9% liked)
Asklemmy
44149 readers
1891 users here now
A loosely moderated place to ask open-ended questions
If your post meets the following criteria, it's welcome here!
- Open-ended question
- Not offensive: at this point, we do not have the bandwidth to moderate overtly political discussions. Assume best intent and be excellent to each other.
- Not regarding using or support for Lemmy: context, see the list of support communities and tools for finding communities below
- Not ad nauseam inducing: please make sure it is a question that would be new to most members
- An actual topic of discussion
Looking for support?
Looking for a community?
- Lemmyverse: community search
- sub.rehab: maps old subreddits to fediverse options, marks official as such
- [email protected]: a community for finding communities
~Icon~ ~by~ ~@Double_[email protected]~
founded 5 years ago
MODERATORS
you are viewing a single comment's thread
view the rest of the comments
view the rest of the comments
Tips are a way for service industry workers to avoid taxes. I wonder if there's any reliable statistics on how many workers in the service industry report their tips accurately to the IRS
I would respectfully disagree. There is an entire system for tracking tips: https://www.irs.gov/newsroom/tip-income-is-taxable-and-must-be-reported and https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting. For another, the whole tipping process was discovered by wealthy Americans:
In an ideal world, service industry workers would be paid a living wage, and there would be no tips required. That’s how it should be.
Ultimately, tips are a way for “owners" to avoid paying fair wages, using the customer base to subsidize the employee’s wages. I won’t even go into instances where the owners steal tips from their staff.
Do some people under-report tips? Probably. But will most service workers, who can barely afford to survive in this country, incur the risk of being audited by the IRS if they don’t report tips and get penalized thousands of dollars for their meager hundreds? I very much doubt it. And yes, the IRS does go after the little guy - a lot. It’s cheaper than going after rich people with lawyers.