Just learned my sister, who is a server working for 3-something an hour in Idaho, doesn't get paid the 3-something hourly because they "take it out for taxes". Is this legal? My google-fu is weak today.
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Yeah tell her to move to Cali, it’s $14 plus tips. Every state should be min wage plus tips.
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taxes on cash tips are paid out of hourly wage and card tips, that's why you see servers posting a $2.52 check
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Yes, years ago I made $2.13 per hour. The government makes you claim 8% of your sales. So the money you get paid hourly covers your taxes.
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They make it up on the backend. She has to get at least minimum wage. In addition she earns tips
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Yeah, but she gets a chunk back on her tax return. This is a psyop that works by giving you a sum of money after filing taxes, which makes taxes feel like a net gain, rather than having to pay a large sum
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Yeah, basically say a server works four seven-hour shifts and makes $500 in tips. They earn $84 in wages also. Their taxes would be something like $80-$99 depending upon adjustments, so they would either get a tiny check or owe the restaurant for taxes
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