Date: 2010-08-17 06:23 am (UTC)
Waiters are not taxed on the amount of the bill. They are taxed based on the tips they report on their 1040. If your employer reports more tips on your W-2 than you report on your 1040 then you might have to explain the discrepancy to the IRS. Your employer CAN withhold taxes based on some estimated amount of tips, but you can correct your W-4 for lower withholding and/or get that refunded.
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Clarence "Sparr" Risher

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