Question by leigh c: Too much work not enough cash..?
I receive credit card tips and cash tips at my job.At the end of the day I enter 0 into the computer for my cash tips.The credit card tips are documented into the computer when the customer pays.When I receive my paycheck I am taxed on the cash amount that is made up by my employer and the credit card amount.Then in the deductions section my employer is taking back the amount that was given for cash tips.Is this legal.I feel like im being taxed on money that I don’t see.
Best answer:
Answer by MVD34
Double check with your employers HR department, but I believe that is the law.
The IRS requires employers who employ tip based employees to assume a certain amount of tip income for tax purposes regardless of whether or not an employee reports that much income.
This is the direct result of IRS audits proving that such employees systematically under report income (aka cheat on their taxes).
What do you think? Answer below!
Too much work not enough cash..?
Want to buy TurboTax? Check out http://turbotax2012download.net
No comments:
Post a Comment