Reported Cash Tips Offset?

Question by william: Reported Cash Tips Offset?
On my pay stub at the top it says “Earnings and Hours” then under that “Reported Cash Tips” $ 100.00.

Then the Taxes section, and at the bottom it says Adjustments to Net Pay” and under that “Reported Cash Tips (offset)” -100.00.

I am confused as to why my tips were added in at the top then taxed then minus off in full (100%).

Am I just reading this wrong or missing something or are they really taking 100% back?

Best answer:

Answer by card-ron
Your tips were added to your gross pay so that proper taxes could be withheld from those earnings. The tips were then deducted from your gross pay because you already received that money (in cash) and your employer does not pay it to you again. Your net paycheck is then your hourly wage minus tax withholdings.

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Reported Cash Tips Offset?

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