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Migraine (Patrick) in MN
Everyone seems to miss the point of tip credit. When in doubt ask why, then why again. And the answer is, “It’s all about taxes. Currently the Restauranteur, pays taxes on real wages (hourly), then collects tip info and pays taxes on that, but can’t declare that as wages”. So the point is, are tips (freely given) wages or not. If not, no tip credit and no taxing the Restaurant. If yes, then yes to both. Right now the tax man has it both ways and that’s not right; thus the controversy”. Sen Feinstein as well can’t make up her mind, will this slash salaries, (ok now their wages) or not, (ok now their not salaries), which is it, both ways is wrong. And of course all tipped staff report 100% of tips like the law requires…