I added this to the -ve tip thread, but since it is really its own subject I’ll repost it as a GQ.
It was stated in the other thread that food servers are expected by IRS to have been given an 8% tip, and that they are taxed upon that expectation.
Does anyone know if the 8% IRS value for expected tips is still valid, or has it gone up since basic tip % has gone up?
Secondly what tax rate would be typical for a low payed server. IE what percentage of the 8% expected tip would be payed by the server as tax if they were in a tax bracket of a minimum wage earner?
Which gets to this question
on a $10.00 bill how much would a server be out of pocket if they were stiffed on the tip?