Are credit card tips reported already if you are a bartender/server?

Question

i have heard so many different things, and I dont trust when my boss says they are not, I have a paranoia that they are and they just tell us they are not so we will claim more tips so we can get taxed more and they don't have to pay us as much. You servers and bartenders know what I am talking about, my checks are sometimes 2 dollars or just a voided reciept because it was 0!

Answer 1

it depends on were u work i guess, as differant places do it differantly, but all the places that i have worked, they do it for you automatically,(with charge tips) you are responsible for entering the amount of claimed tips per day, but you cannot claim less than your charge tip amount, and mine is usually always high enough, i rarely claim any of my cash tips... it dosent sound right that your checks are so low or not at all, i dont know how much you work or anything, but i average about 25hours a week, and even at getting paid $4.00/hr. at 2x a month, my checks are always around $100.00. I would definatly check into that..

Answer 2

You mean are they reported to the IRS as income when the card is swiped for approval?  No, swiping the card does not report it to the IRS.  The tip isn't even on it until the customer fills it out so how can it already be reported?

Answer 3

Yes, credit card tips are automatically claimed on your taxes. I don't know why your boss would tell you no. It is not like they would be paying less on your check. They are paying the same no matter what, it is just a matter of where it is going (to you or the government the establishment still pays it). Anything else you claim at the end of the night is extra on top of the credit card tips.