4 years ago
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IRS Changing Rules on Tips
America's waiters and waitresses can't seem to get a break. Not only do they make a mere $2 to $5 an hour base salary in most places, now the tax man wants to make their lives more miserable. Yes, the IRS is worried that people who typically make about $20,000 a year aren't paying enough in taxes. Why go after millionaires and billionaires when you can squeeze more out of servers? In a new rule set to take effect in January, restaurants that charge an "automatic tip" have to treat that amount like a wage, not a tip. What is the point of this?
robertr clipped in 1 collections
Now that I live in Korea, I wonder why we tip in America. I know that servers work hard (or at least some do) and it is a way of showing appreciation, but in Korea we don't tip... and the service is better! If you think being a waiter in America is hard... most waiters in Korea get paid ~$4.50 an hour before tax and don't get tips. AND they have to deal with all the drunk men at night.
Its not about showing appreciation, its an evaluation of the server. Average=17%, good=20%, bad=15%. ANd when I was in Korea I thought the service was absolutely terrible by comparison. You have to take your check up the counter to pay even at the nicest restaurants!