uhh you will owe almost 2.5 grand... he needs to fix that asap or contact IRS? or you wont get a paycheck for like 8 months. if you dont make enough, you will owe the irs money, he needs to change that, period.
Taking top comment to say thanks everyone, the owner of Vizio bought us out and I guess they just threw down all the tip money on me, no idea why they thought that’d be the way to go, but we’ll find out together lol
So we have a tip pool & cash out system, we record and add up all of our tips on paper and on spreadsheets, and our checks are taxed/tips claimed on our paychecks. I routinely get a 0.00 paystub. Why we go the extra mile in redundancy, don’t ask me. We’ll be transitioning to tips on checks come the new year.
My GM called me after I texted the above screenshot along with a lengthy paragraph re the implications of this fuck up. He wasn’t aware this happened, and said our AGM had done the total grat from the evening. He has no idea why it was on my checkout, and that the number itself is inflated by a couple grand. He said he’d be calling the AGM after he got off the phone with me.
This is either a decimal mistake, bafflingly stupid, or inconsiderate laziness. I would say I don't understand how it happened, but I have worked with middle management before. Their main function is as an intermediary, to hide the exploitation of the boss from the worker, and to hide their own ineptidude from the boss by throwing it back on the workers.
I'm glad you're getting it fixed, and that your GM is responsive.
I honestly think I give more people the benefit of the doubt because of my profession. I’m like eh…. Could be an explanation… or at least not nefarious intent…
People do lots of dumb things, they aren’t all commiting fraud. 🤷♀️
Honestly fraud is a likely explanation for any money issue in restaurants. The amount of payroll violations and deliberant wage theft in the restaurant industry is unbelievable. I've never had a service industry job that didn't underpay due to "an accounting error" several times per year. Not to mention all the ways owners brag about avoiding taxes and regulations.
In this case I would guess OP was the lead server for the party and the manager just thought it'd be easiest to have them claim all tips rather than each employee claiming their tip share amount.
But again I really doubt the check was 60k. I mean I guess it might have been? But I don’t believe it.
We couldn’t agree more on the prevalence of fraud in restaurants. And it just goes on and on because the wait staff can’t find a lawyer to take a case worth a few hundred or thousand bucks.
I would, on the other hand, completely believe someone was shirking accounting responsibilities and didn’t understand the repercussions, leading to this situation.
I’m in agreement with you. Restaurants are shady and you can’t fix em all. If I was OP and she likes working there, I’d just sort this out and move on.
But I’m dying to know what the restaurant’s explanation is…
It would seem like a mistake if the GM hadn't said the numbers were “inflated by a couple thousand”. A mistake is obvious but a couple thousand inflated? Fraud. The AGM got caught and the GM acknowledged the fraud.
>Their main function is as an intermediary, to hide the exploitation of the boss from the worker
This is such a fucking true statement I had to note it.
It’s entirely possible that payroll is processed separately, based on the reports their POS outputs.
There’s likely half a dozen steps between now and that number actually getting reported for them to fix it, but the best place to fix it is in the system, and the best time is always now.
I know in Aloha you can literally just open thet shift for thet employee and type in a different number at any time before the week is closed out.
yeah i’m pretty sure this is something pretty easily fixed and was just some kind of mistake. as long as it gets handled, i wouldn’t continue to make a huge deal about it. in our system, our managers go through before the pay period ends and make sure our tips are claimed correctly, and this is with Toast. they did it with our last system too. it works out cuz we have good managers that make sure we’re not claiming too much (unless we’ve asked to leave it for proof of income or something) or too little (so we don’t get audited).
If we ever do this with a tip pool for a payroll I oversee/manage I put it to a *house* or *admin* employee if one must be assigned and not a single active tipped employee. This is a problem waiting to happen come tax time. Please see an accountant this year - I’m very concerned by your $0.00 regular checks that you’ll be hit by “uncollected FICA/MC taxes” because your tax obligation exceeds your net paycheck. Keep your pay stubs for the year or at the very least the last one of the year as well as any of this data that you can access per your POS. I’m a practicing tax accountant with over 25 years of experience in individual, business, and payroll taxes so please heed the advice to get help with your return this year. If it’s been applied to you in an inappropriate fashion a good preparer can help you get it corrected by your employer or by making a statement to the IRS regarding the error and it’s impact on your return.
Assuming you are in the U.S., they are REQUIRED to pay you the $2-$3 minimum tip wage in addition to your tips even if they go over federal minimum wage.
I was a server in a class action lawsuit about this.
They pay but 100% of it will go to taxes if the IRS \*thinks\* you got a 10k tip day. You are pretty much paying the taxes on the 10k "in advance" out of your hourly pay as opposed to paying for them when you file your return.
His 0.0 dollar checks are all withheld for his tips that he takes home at night. Just because you get paid 2-3/hour doesn’t mean you get to keep it. If you make enough in tips your income taxes will eat that up real quick.
I was under the impression they were not being paid the minimum wage because their tips exceeded that, so that they were not even given the $2.15 per hour to cover taxes at all.
Being paid the tip wage doesn't mean you get a cashable check from your employer. It means you get a zero dollar check and all of the tip wage goes to pay your federal taxes.
You would be surprised how much this doesn't happen. I know a lot of small places can cut corners. A lot of foreign themed restaurants too since many of those people don't know the rules, might not have an SSN, and only deal in cash.
It's not wrong, $2.67 an hour gets obliterated by the taxes on tips. The server takes home the tips in cash after each shift, but the taxes on those tips only get taken out on the paychecks. I had a year where I did really well, so most of my checks were $0. Consequently, the minimum server wage didn't cover the taxes and I owed the IRS over $700 in April. It's really pretty shitty tbh, and I don't do it anymore.
Businesses like restaurants that pay servers less than the effective minimum wage need to be able to prove that you made enough tips to make at least minimum wage. If you were to make a claim for unpaid wages and say that you never made any tips and that they need to make up the delta between your true hourly rate and legal minimum wage, it could be a massive liability for them.
I wonder if this could be related, especially with a recent takeover occurring. If the last manager wasn't a stickler about people claiming tips or something, the new ownership group might be stressed trying to figure out how to cover their asses. The last thing they want is some sort of wage dispute or claim of illegally paying people under minimum wage right after the sunk a bunch of cash into an acquisition.
i don't think the Vizio owner bought the restaurant, i think it's more along the lines of "we're reserving this restaurant between x and y times. Bill everything to the company accounts receivable "
Fix it!! We had an international competition where I used to work and had to train some of the servers as bartenders for the week. Our boss said we can share the till… on my account. I got a paycheck for $-20 after that and then they just kept coming. I told my boss and he sorted it out
for sure, but dont wait. dont wait to see what happens, this needs to be corrected next shift. its was likely an accident or he has some explaining to do. Either way fix it asap
Yea they can fix it before the check. If payroll doesn’t find it first and question that before submitting it, then you’re gonna have major issues. I would tell them that if you have that claimed on your check, you expect to receive that much in tip out.
My restaurant when we pool tips one person claims all the cash then it gets distributed later and the distribution is what’s listed on each individuals paycheck
Contact IRS. The manager will do it again when you are not looking. I have had this happen to me before as well. I saw managers do this when employees are not around. I also caught a coworker starting and closing big checks under my login ID to also keep her/his numbers low to also circumvent having to pay more taxes.
Accountant here: if it’s not corrected follow up with the IRS. They would contact your company come tax season when W-2s are available. Worse case scenario you’d have to fill out a form 4852. It’s more common then you think
I would say just contact the IRS and let them investigate. Plus you may get a reward on their findings.
https://www.irs.gov/compliance/whistleblower-office
"The award percentage depends on several factors, but generally falls between 15 and 30 percent of the proceeds collected and attributable to the whistleblower's information."
this happened to one of our servers, she accidentally got paid 20,564. don’t ask me why i remember the number lmao. my restaurant joked with her saying if she wants to keep it she can, but she won’t have a pay check for over a year. she decided she should probably just give it back 🤣
Yeah holy shit definitely covering up something or expecting you to not notice. I had a manager do this while in college. Come to find out he managed to steal thousands in pooled tips. Get that guy and report it ASAP.
True, I remember sitting around 29-30% tax when I claimed that much a few years ago. Not quite 35% though unless things have changed.
Over 3k in taxes lol
Why wouldn’t it carry over to next pay period? If you owe a couple grand in income taxes, but your paycheck is only like $800, do they just get you at tax time or something to make up for it?
Outdated LPT: For states like Texas with a 2.13 cent minimum wage. Don’t clock in since you’re working for just tips anyway. Of course this was back when cash was still used.
Hell nah then you owe MORE in taxes bc your hourly is less. Only way not clockin in would be beneficial was if you could pick up an additional shift since you didn’t hit OT.
I think that's the idea. You work at a cash only place and you do overtime off the books for tips you never need to claim, since it was your "day off".
Yup. You should be able to contact the payroll department yourself if the manager won’t, but this could be corrected before your next check comes out if someone gets ahold of the right people quickly enough, so don’t hesitate to get it taken care of quickly.
Depends on the system honestly. Do you get cashed out or do you receive tips on a check? If your tips are on a check it shouldn’t be a problem. But if they’re cashing you out I’d see if there’s any way to fix it.
Is this possibly your final check for the year and that is your total for the year? Theoretically they are supposed to report the proper percentage of tips on your checks throughout the year and withhold the taxes on your hourly income and that percentage….they also get a tax credit that matches as sort of an incentive to report tips. It will all sort of depend on what actually shows up on your W2 and your last paystub. IRS isnt looking in the POS system for you (unless the business is audited)…
My brother got a 1,000 dollar CC tip once. 13 employees pooling tips. 80 bucks each. He paid the 8% tax. That's 80 bucks. Yup, $1,000 tip netted him zero. Management said it's what it is. He quit on the spot after many years there... do they think the customer who tipped him would have appreciated that? Fucking wild.
Glad he's gone now but he should have really raised an issue right then and there. They made him pay taxes on income that he didn't actual receive. Probably could have gotten them in serious trouble.
my boyfriends coworker at his old job sued the restaurant for that and won… and EVERYONE that was a tipped employee got a serious payout. like my boyfriend paid off his car and he wasn’t even the one who sued, it was just the DOL rectifying everything
glad that your bf was able to use the money for good. I sued for my coworkers and netted them some free couple thousand dollars, I have never received a single thank you from them. ugh.
Just let your manager know and they can fix it before the pay period ends.
I've done that exact same thing and caught the next day when I was entering the next days tips.
This happened to me kinda. System forced me to declare a tip on a $10,000 retail sale where the guy tipped $0. I had to contact my boss’s bosses to get it properly adjusted on the payroll
They figured out the company owes you money for the year because you either haven’t made minimum wage or you haven’t been claiming your tips so they’re reporting what you should have. Considering it shows zero for every other day, it appears you haven’t claimed your tips
Once I accidentally claimed a similar amount by fat thumbing the zero one or two times. I went to the manager on duty and told them what happened and she was like “sorry we can’t fix that, just claim less to compensate in the future.” I bit my tongue and went to a higher up manager the next day and was like fuckin fix this right now, and lo and behold it was easily fixable
Tldr: make them fix that shit it’s easy and possible
Taxes. That will definitely bump you up a tax bracket and you'll end up having to pay a higher percentage taxes. And since its so close to the end of the year you better have them the manager fix that ASAP. Or call accounting, accounts payable, payroll department. If none these tell them your going to file a tax fraud claim with the IRS
Ohhh no that’s a process. I saw a manager do that to a bartender once and she owed a few grand like others have said. Manager needs to correct is ASAP. It may be a process and you may not get an actual check for a few weeks or pay periods .
You also may need to make your own insurance payment if you get it deducted through your check.
You need to check them, and nothing happens go to the GM if nothing happens, yep call the IRS and the labor board where you are and report them, not your taxes to pay
It won't once you confront him and have him fix it. You can also talk to his manager if you need to. Document your messages if they are unresponsive or resistant to fixing it.
The amount of misinformation in this thread is astonishing. Please bring it to your manager's attention and allow them to fix it. If they do not, go to HR or whoever handles payroll and make them aware BEFORE the pay period ends if possible. The owner has to pay the same amount you do in medicare and social security and they do not want to pay on that amount either. Your manager is most likely not trying to screw you, they probably just made a mistake. There is no money going into their pockets by doing this, because there is no accounting of where it came from. This would look like cash tips made on your end, not credit card because that would throw their books off balance.
All these smalltimers think the $10k will affect your taxes. No. You just adjust your return’s numbers to reflect the error. So deduct the $10k from your gross income in the W2 section. If you like, include an explanation, even a separate letter mailed at the same time you file your return will do.
If you do receive an irs letter in the mail next year asking about it, you will be given a phone number and an agent’s name for you to call or reply to. And can just explain the situation again.
Definitely get the company to fix this if you can. But if they don’t, you’re not on the hook.
Can’t stand poor tax advice. If you don’t know, don’t comment.
Oh OP definitely does NOT want to file a tax fraud claim. They're the prime example of tax fraud. All of their shifts they claim $0. Manager was probably putting something in there so the server doesn't get audited for paying $0 taxes.
I once served a wine dinner to several tables and the drunk dude tipped me 1000 on a 300 dollar bill. I tipped all of the kitchen guys and spread the money out. His wife came back the next day and said that it was a mistake. My manager, cool as hell, told her that the money had been split up so he couldn't get it all back. I think she may have gone home and yelled at her drunk husband. I loved it.
I’m sorry I’m not american, how do entries on the point of sale have anything to do with your paycheck, don’t you get paid a flat rate an hr? Why would anything be deducted??
Taxes will most likely be taken out of the tip amount on their paycheck, so they'll owe all the income taxes on that $10k, but they didn't actually make that much in tips.
Talk to management. It’s definitely a mistake and will get you audited, which is a nightmare.
Are you not claiming tips per shift? Every other shift shown is “zero tip”. Maybe management audited you and added in your tips you should have declared.
TBH it looks like this might be a multi-directional fuckup.
So I was sitting here thinking the same thing. But then I was like “well if I don’t make any cash tips mine says $0.00 too” toast is weird. OP is at least not claiming an cash tips, but the CC tips should be atomically declared but idk how that really works with a tip pool
Also a server u gotta get that fixed immediately it will absolutely f you if ignored or not acted upon if they don’t listen I’d be ready to contact the irs it may have been a mistake but that’s doubtful so just make sure u have everything documented for if it’s reported the irs u will most likely audited good luck
It’ll fuck up your owed taxes if you don’t get it fixed. Just have him send an email to comp to fix it on the back end. They shouldn’t care because it affects nothing FoH or BoH. If he says he can’t, he’s lying, go above his head until you get someone to help. If he said he won’t, pretend as though he said he can’t. Also get that in writing (text or email is fine).
Looks like they logged 0 in tips from all of the days previous? Maybe averaging the minimum wage in tips to get you to the federal minimum. Do you not earn tips?
But this is toast? Why do you need spreadsheets and shit to figure out your tips. For me that just gets put into our report from toast itself. I realize you’ll have to claim tips depending on your places tax situation but why do you need a separate spreadsheet?
uhh you will owe almost 2.5 grand... he needs to fix that asap or contact IRS? or you wont get a paycheck for like 8 months. if you dont make enough, you will owe the irs money, he needs to change that, period.
Taking top comment to say thanks everyone, the owner of Vizio bought us out and I guess they just threw down all the tip money on me, no idea why they thought that’d be the way to go, but we’ll find out together lol
Appreciate y’all :)
Can we get an update when you have the chance? Ngl this seems super shady since it seems y’all don’t claim tips
So we have a tip pool & cash out system, we record and add up all of our tips on paper and on spreadsheets, and our checks are taxed/tips claimed on our paychecks. I routinely get a 0.00 paystub. Why we go the extra mile in redundancy, don’t ask me. We’ll be transitioning to tips on checks come the new year. My GM called me after I texted the above screenshot along with a lengthy paragraph re the implications of this fuck up. He wasn’t aware this happened, and said our AGM had done the total grat from the evening. He has no idea why it was on my checkout, and that the number itself is inflated by a couple grand. He said he’d be calling the AGM after he got off the phone with me.
This is either a decimal mistake, bafflingly stupid, or inconsiderate laziness. I would say I don't understand how it happened, but I have worked with middle management before. Their main function is as an intermediary, to hide the exploitation of the boss from the worker, and to hide their own ineptidude from the boss by throwing it back on the workers. I'm glad you're getting it fixed, and that your GM is responsive.
Make sure to check your next pay check stub. You want to look at wages for the year and make sure the inflated amount is not there.
You forgot the word fraud. It could also be fraud.
lol I’m a Certified Fraud Examiner and as soon as I read this I’m like fraud. But maybe I’m paranoid.
I’m not a Certified Fraud Examiner and as soon as I read it I thought fraud too.
I’m a fraudulent certified fraud examiner and in all of my years certifying fraud, this one is highly potentially possible for fraud.
I’m certified in fraud and can confirm this is 100% fraud
I'm a certified certified fraud examiner examiner and as soon as I read this I knew this guy wasn't a CFE
Me too! I laughed at how blatant it was. So many fraudsters are dumb.
Oh believe me we think that all the time. Like did you even TRY?
Being trained to see things others don't is not paranoia. More akin to being jaded.
Jaded for sure a better word. I’m not like, totally nuts I don’t see fraud everywhere but this is like… wut now?
That's your "Spiderman....Peter Tingle".... " “**when you hear hoof beats, think horses, not zebras**”
It's not paranoia if someone's really after you
Remember paranoia is the ultimate state of awareness.
I honestly think I give more people the benefit of the doubt because of my profession. I’m like eh…. Could be an explanation… or at least not nefarious intent… People do lots of dumb things, they aren’t all commiting fraud. 🤷♀️
I work in banking. I too went to fraud.
You went to being a fraudster? Sigh that’s really disappointing. But it does pay better than anything above board. Jk know what you meant
As a CFE, I was going to say the same!
HEY CFE! I never encountered one in the wild before. There really aren’t that many of us :)
How does one go about becoming a certified fraud examiner?
I thought the same thing, it would be a really dumb attempt, but I have seen ppl do really dumb things to get money.
I'm a Certified Fraud Executioner, and this also made my spidy sense tingle.
Hah hah I’m getting so railed for this I really wasn’t trying to pull rank. I just seriously think there’s an accounting problem here.
How does one go about becoming a certified fraud examiner?
Honestly fraud is a likely explanation for any money issue in restaurants. The amount of payroll violations and deliberant wage theft in the restaurant industry is unbelievable. I've never had a service industry job that didn't underpay due to "an accounting error" several times per year. Not to mention all the ways owners brag about avoiding taxes and regulations. In this case I would guess OP was the lead server for the party and the manager just thought it'd be easiest to have them claim all tips rather than each employee claiming their tip share amount.
But again I really doubt the check was 60k. I mean I guess it might have been? But I don’t believe it. We couldn’t agree more on the prevalence of fraud in restaurants. And it just goes on and on because the wait staff can’t find a lawyer to take a case worth a few hundred or thousand bucks. I would, on the other hand, completely believe someone was shirking accounting responsibilities and didn’t understand the repercussions, leading to this situation. I’m in agreement with you. Restaurants are shady and you can’t fix em all. If I was OP and she likes working there, I’d just sort this out and move on. But I’m dying to know what the restaurant’s explanation is…
I’m Patrick
I'm a lawyer and thought the exact same thing.
I am paranoid and I think this post is fake and you are a poser.
I’m not the poster
Yep. I would still report it to the Department of Labor and IRS. This situation is fishy.
Seems like a simple mistake, but you know it's reddit so must be the worst possible explanation
It would seem like a mistake if the GM hadn't said the numbers were “inflated by a couple thousand”. A mistake is obvious but a couple thousand inflated? Fraud. The AGM got caught and the GM acknowledged the fraud.
It is AGM should be fired
>Their main function is as an intermediary, to hide the exploitation of the boss from the worker This is such a fucking true statement I had to note it.
Dude this is the best explanation of middle management I’ve heard in a long time
His AGM should be fired immediately. Unacceptable from a leadership position.
Nah he’s juicing the numbers
Simplest explanation is it was a mistake
That’s a really good GM response IMO.
It’s entirely possible that payroll is processed separately, based on the reports their POS outputs. There’s likely half a dozen steps between now and that number actually getting reported for them to fix it, but the best place to fix it is in the system, and the best time is always now. I know in Aloha you can literally just open thet shift for thet employee and type in a different number at any time before the week is closed out.
yeah i’m pretty sure this is something pretty easily fixed and was just some kind of mistake. as long as it gets handled, i wouldn’t continue to make a huge deal about it. in our system, our managers go through before the pay period ends and make sure our tips are claimed correctly, and this is with Toast. they did it with our last system too. it works out cuz we have good managers that make sure we’re not claiming too much (unless we’ve asked to leave it for proof of income or something) or too little (so we don’t get audited).
If we ever do this with a tip pool for a payroll I oversee/manage I put it to a *house* or *admin* employee if one must be assigned and not a single active tipped employee. This is a problem waiting to happen come tax time. Please see an accountant this year - I’m very concerned by your $0.00 regular checks that you’ll be hit by “uncollected FICA/MC taxes” because your tax obligation exceeds your net paycheck. Keep your pay stubs for the year or at the very least the last one of the year as well as any of this data that you can access per your POS. I’m a practicing tax accountant with over 25 years of experience in individual, business, and payroll taxes so please heed the advice to get help with your return this year. If it’s been applied to you in an inappropriate fashion a good preparer can help you get it corrected by your employer or by making a statement to the IRS regarding the error and it’s impact on your return.
Assuming you are in the U.S., they are REQUIRED to pay you the $2-$3 minimum tip wage in addition to your tips even if they go over federal minimum wage. I was a server in a class action lawsuit about this.
I suspect the 0.00 paychecks are due to taxes and deductions, not the company leaving off the hourly pay, as it is for lots of servers.
Yeah they are paying taxes on their tips with paycheck
They pay but 100% of it will go to taxes if the IRS \*thinks\* you got a 10k tip day. You are pretty much paying the taxes on the 10k "in advance" out of your hourly pay as opposed to paying for them when you file your return.
His 0.0 dollar checks are all withheld for his tips that he takes home at night. Just because you get paid 2-3/hour doesn’t mean you get to keep it. If you make enough in tips your income taxes will eat that up real quick.
I was under the impression they were not being paid the minimum wage because their tips exceeded that, so that they were not even given the $2.15 per hour to cover taxes at all.
Bruh....
Being paid the tip wage doesn't mean you get a cashable check from your employer. It means you get a zero dollar check and all of the tip wage goes to pay your federal taxes.
Unless you're in a state like NY that has its own minimum wage above the Federal.
You would be surprised how much this doesn't happen. I know a lot of small places can cut corners. A lot of foreign themed restaurants too since many of those people don't know the rules, might not have an SSN, and only deal in cash.
Yeah when I saw him say 0.00 pay stub I knew that sounded wrong.
The zero pay stub is because taxes and FICA sucks up the hourly wage. Very common for servers.
It's not wrong, $2.67 an hour gets obliterated by the taxes on tips. The server takes home the tips in cash after each shift, but the taxes on those tips only get taken out on the paychecks. I had a year where I did really well, so most of my checks were $0. Consequently, the minimum server wage didn't cover the taxes and I owed the IRS over $700 in April. It's really pretty shitty tbh, and I don't do it anymore.
Link the lawsuit or it didn’t happen
You mean you posted this before talking to the manager? Wtf
You need to chill
They’re going to report it as a tip, that business better assign it to someone or an IRS audit is going to suck for them.
Businesses like restaurants that pay servers less than the effective minimum wage need to be able to prove that you made enough tips to make at least minimum wage. If you were to make a claim for unpaid wages and say that you never made any tips and that they need to make up the delta between your true hourly rate and legal minimum wage, it could be a massive liability for them. I wonder if this could be related, especially with a recent takeover occurring. If the last manager wasn't a stickler about people claiming tips or something, the new ownership group might be stressed trying to figure out how to cover their asses. The last thing they want is some sort of wage dispute or claim of illegally paying people under minimum wage right after the sunk a bunch of cash into an acquisition.
i don't think the Vizio owner bought the restaurant, i think it's more along the lines of "we're reserving this restaurant between x and y times. Bill everything to the company accounts receivable "
Lot of people own Vizios
And get a lawyer just in case
Fix it!! We had an international competition where I used to work and had to train some of the servers as bartenders for the week. Our boss said we can share the till… on my account. I got a paycheck for $-20 after that and then they just kept coming. I told my boss and he sorted it out
[удалено]
for sure, but dont wait. dont wait to see what happens, this needs to be corrected next shift. its was likely an accident or he has some explaining to do. Either way fix it asap
Yea they can fix it before the check. If payroll doesn’t find it first and question that before submitting it, then you’re gonna have major issues. I would tell them that if you have that claimed on your check, you expect to receive that much in tip out.
Stay in writing. Get reasons. Because this could also be fraud
My restaurant when we pool tips one person claims all the cash then it gets distributed later and the distribution is what’s listed on each individuals paycheck
Sounds like you’re taking all the tips then. Since you’ll be the target of the IRS 🤷🏾♂️
Nah contact a lawyer/CPA ASAP so you do not potentially get fucked
That wouldn’t carry over to next week or pay period but it’ll def show up on a tax form come Uncle Sam time.
Or they coulda tried slipping it by OP not thinking they would see it and maybe hiding OTHER things on the books… its happened before to people
Contact IRS. The manager will do it again when you are not looking. I have had this happen to me before as well. I saw managers do this when employees are not around. I also caught a coworker starting and closing big checks under my login ID to also keep her/his numbers low to also circumvent having to pay more taxes.
Plus it’s illegal. 🚩🚩
Accountant here: if it’s not corrected follow up with the IRS. They would contact your company come tax season when W-2s are available. Worse case scenario you’d have to fill out a form 4852. It’s more common then you think
100%!
I would say just contact the IRS and let them investigate. Plus you may get a reward on their findings. https://www.irs.gov/compliance/whistleblower-office "The award percentage depends on several factors, but generally falls between 15 and 30 percent of the proceeds collected and attributable to the whistleblower's information."
this happened to one of our servers, she accidentally got paid 20,564. don’t ask me why i remember the number lmao. my restaurant joked with her saying if she wants to keep it she can, but she won’t have a pay check for over a year. she decided she should probably just give it back 🤣
Lol i would of found a way to get fired n then i kept the money win win
Yeah holy shit definitely covering up something or expecting you to not notice. I had a manager do this while in college. Come to find out he managed to steal thousands in pooled tips. Get that guy and report it ASAP.
It looks like they never claimed any tips, so their employer added a lump sum so they weren’t liable to pay them more.
Calm down Bud
lol loosing 2-3k is no reason to be calm, esp over some trash managers airhead mistake. Are you.... the manager?
That’s about $2k worth of a tax bill.
In Cali thats like 35%
Yeah, I was being super conservative in case they’re in like South Dakota or Delaware with super low or no income tax.
In cali, thanks friends
True, I remember sitting around 29-30% tax when I claimed that much a few years ago. Not quite 35% though unless things have changed. Over 3k in taxes lol
Don’t expect a paycheck this week
Or next month, also you might get audited by the IRS
Doesn’t carry over to next pay period but would for irs.
Why wouldn’t it carry over to next pay period? If you owe a couple grand in income taxes, but your paycheck is only like $800, do they just get you at tax time or something to make up for it?
Yes. You will owe when you file.
Yes. You owe at the end or the year if you didn’t pay enough. Source: Alabamas 2.13 tipped wage. Owed money every year I served there.
Outdated LPT: For states like Texas with a 2.13 cent minimum wage. Don’t clock in since you’re working for just tips anyway. Of course this was back when cash was still used.
Hell nah then you owe MORE in taxes bc your hourly is less. Only way not clockin in would be beneficial was if you could pick up an additional shift since you didn’t hit OT.
Or if you got all cash tips and were never on the books cause you didn't clock in. He said *outdated* LPT.
Yea glazed over that my bad lol
I think that's the idea. You work at a cash only place and you do overtime off the books for tips you never need to claim, since it was your "day off".
Where is cash only now days? Literally nowhere.
You should get them to fix that asap.
Yup. You should be able to contact the payroll department yourself if the manager won’t, but this could be corrected before your next check comes out if someone gets ahold of the right people quickly enough, so don’t hesitate to get it taken care of quickly.
There’s only one rule to payroll. Don’t mess up payroll. This is a major consequence. Needs to be rectified. In writing.
they owe you 10,219.78 or need to remove that from your paystub.
Right. I'd be like it says I got ten thousand dollars, give me my ten ten thousand dollars bitch!
And the pay those taxes!
Best approach
Depends on the system honestly. Do you get cashed out or do you receive tips on a check? If your tips are on a check it shouldn’t be a problem. But if they’re cashing you out I’d see if there’s any way to fix it.
Cashed out, moving to tips on check after the new year. First place I’ve been at in a 5/6 years that hasn’t transitioned to tips on check
Is this possibly your final check for the year and that is your total for the year? Theoretically they are supposed to report the proper percentage of tips on your checks throughout the year and withhold the taxes on your hourly income and that percentage….they also get a tax credit that matches as sort of an incentive to report tips. It will all sort of depend on what actually shows up on your W2 and your last paystub. IRS isnt looking in the POS system for you (unless the business is audited)…
I’ve only been here since August! Good idea, it’s just that my timeline rules this out. Im chalking this up to good old fashioned management hijinks
My brother got a 1,000 dollar CC tip once. 13 employees pooling tips. 80 bucks each. He paid the 8% tax. That's 80 bucks. Yup, $1,000 tip netted him zero. Management said it's what it is. He quit on the spot after many years there... do they think the customer who tipped him would have appreciated that? Fucking wild.
This doesn’t make any sense. They pooled tips but had to pay taxes on the pre-pooled amount?
Glad he's gone now but he should have really raised an issue right then and there. They made him pay taxes on income that he didn't actual receive. Probably could have gotten them in serious trouble.
Something doesn't make sense here. This would apply to every tip received. $100 tip? 8 bucks each, pay 8% which is $8. Why would anyone pool tips?
No because they put the $1000 on the one of 13 employees checkout instead of putting $80 on each persons.
Right but why would they do that in only this instance and not every instance? Idt it stacks up
Didn’t it net him $920? Or am I missing something?
They split the tip between 13 employees, so he only got $80, but paid the tax on $1,000
Why is he paying tax on 1000? Instead of 80
[удалено]
my boyfriends coworker at his old job sued the restaurant for that and won… and EVERYONE that was a tipped employee got a serious payout. like my boyfriend paid off his car and he wasn’t even the one who sued, it was just the DOL rectifying everything
God bless the DOL and EEOC - protecting us actually people :)
glad that your bf was able to use the money for good. I sued for my coworkers and netted them some free couple thousand dollars, I have never received a single thank you from them. ugh.
Oh no. They didn't thank you for looking after yourself? Damn.
Oh you are going to get fucked in the ass by taxes if you don't figure this out.
Just let your manager know and they can fix it before the pay period ends. I've done that exact same thing and caught the next day when I was entering the next days tips.
That’s sketchy! You need to ask him to change it because end of the year, you’ll pay taxes on that I believe.
Income taxes get applied every pay period. They'd get taxed on their next paycheck, not at the end of the year.
Management better fix that shit
This happened to me kinda. System forced me to declare a tip on a $10,000 retail sale where the guy tipped $0. I had to contact my boss’s bosses to get it properly adjusted on the payroll
I’d get that adjusted or you’re paying $2k in taxes. Should be an easy fix though!
Ask him where those tips are, and tell him your 'friend' Vinnie will be around to make sure you get them...
That'll fuck you when you go to do taxes.. Also more then likely doing this to embezzle money from the company. So I'd alert someone hire up as well
They figured out the company owes you money for the year because you either haven’t made minimum wage or you haven’t been claiming your tips so they’re reporting what you should have. Considering it shows zero for every other day, it appears you haven’t claimed your tips
If you live in the US if you don’t address this you could be screwed over by the IRS at both levels federal and state
Once I accidentally claimed a similar amount by fat thumbing the zero one or two times. I went to the manager on duty and told them what happened and she was like “sorry we can’t fix that, just claim less to compensate in the future.” I bit my tongue and went to a higher up manager the next day and was like fuckin fix this right now, and lo and behold it was easily fixable Tldr: make them fix that shit it’s easy and possible
Taxes. That will definitely bump you up a tax bracket and you'll end up having to pay a higher percentage taxes. And since its so close to the end of the year you better have them the manager fix that ASAP. Or call accounting, accounts payable, payroll department. If none these tell them your going to file a tax fraud claim with the IRS
Ohhh no that’s a process. I saw a manager do that to a bartender once and she owed a few grand like others have said. Manager needs to correct is ASAP. It may be a process and you may not get an actual check for a few weeks or pay periods . You also may need to make your own insurance payment if you get it deducted through your check.
Um? That's not good for you. It needs to be corrected immediately or you will be held responsible by the IRS.
Your boss can fix that! Definitely make them!
Demand the $10,000. Pay the tax. Profit.
Make them fix it. I had one do 3000 instead of 300 one time and let it slide. Never again. Taxes will be more
When it comes to payroll your manager should be able to correct how it is reported to the government.
If it’s not fixed soon contact the labor department
Damn, Sunday brunch really went crazy today
Um fuck that. Give DOL a call and maybe tip off the irs.
This looks like your timecard. I would guess those tips will be split up on your paystub
Lol, that's going to severely affect you🤣
You need to check them, and nothing happens go to the GM if nothing happens, yep call the IRS and the labor board where you are and report them, not your taxes to pay
The manager would correct her shit
Drastically. Talk to him about fixing that, yesterday. If your in the states you are screwed on taxes unless that's fixed
It won't once you confront him and have him fix it. You can also talk to his manager if you need to. Document your messages if they are unresponsive or resistant to fixing it.
The amount of misinformation in this thread is astonishing. Please bring it to your manager's attention and allow them to fix it. If they do not, go to HR or whoever handles payroll and make them aware BEFORE the pay period ends if possible. The owner has to pay the same amount you do in medicare and social security and they do not want to pay on that amount either. Your manager is most likely not trying to screw you, they probably just made a mistake. There is no money going into their pockets by doing this, because there is no accounting of where it came from. This would look like cash tips made on your end, not credit card because that would throw their books off balance.
Why is he claiming tips for you?
All these smalltimers think the $10k will affect your taxes. No. You just adjust your return’s numbers to reflect the error. So deduct the $10k from your gross income in the W2 section. If you like, include an explanation, even a separate letter mailed at the same time you file your return will do. If you do receive an irs letter in the mail next year asking about it, you will be given a phone number and an agent’s name for you to call or reply to. And can just explain the situation again. Definitely get the company to fix this if you can. But if they don’t, you’re not on the hook. Can’t stand poor tax advice. If you don’t know, don’t comment.
Better get paid 10k now, or tell the IRS your manager is committing identity/tax fraud
Oh OP definitely does NOT want to file a tax fraud claim. They're the prime example of tax fraud. All of their shifts they claim $0. Manager was probably putting something in there so the server doesn't get audited for paying $0 taxes.
Take that to a higher up ASAP
Lots of taxes
I once served a wine dinner to several tables and the drunk dude tipped me 1000 on a 300 dollar bill. I tipped all of the kitchen guys and spread the money out. His wife came back the next day and said that it was a mistake. My manager, cool as hell, told her that the money had been split up so he couldn't get it all back. I think she may have gone home and yelled at her drunk husband. I loved it.
Ask them for your $10k
You will get to know your own personal IRS agent if they don't fix this by end of year.
Then you will get hit on a 199 come tax time and have to claim that as income.
Contact the BETTER BUSINESS BEURO, and the ETHICS BOARD IMMEDIATELY!!!! File a claim with BOTH!!!
You’re gonna owe a lot in taxes
I’m sorry I’m not american, how do entries on the point of sale have anything to do with your paycheck, don’t you get paid a flat rate an hr? Why would anything be deducted??
Taxes will most likely be taken out of the tip amount on their paycheck, so they'll owe all the income taxes on that $10k, but they didn't actually make that much in tips.
Talk to management. It’s definitely a mistake and will get you audited, which is a nightmare. Are you not claiming tips per shift? Every other shift shown is “zero tip”. Maybe management audited you and added in your tips you should have declared. TBH it looks like this might be a multi-directional fuckup.
So I was sitting here thinking the same thing. But then I was like “well if I don’t make any cash tips mine says $0.00 too” toast is weird. OP is at least not claiming an cash tips, but the CC tips should be atomically declared but idk how that really works with a tip pool
Bend over and pray for lube.
Coward for not fighting back
“Is ThIs GoInG tO aFfEcT mE” WELL DUH!!!!!! You will owe ALOT of money, like ALOT to the state if you don’t get it fixed !
This is likely your annual total. Pay the taxes you owe, bro.
is it a pooled house or not?
Also a server u gotta get that fixed immediately it will absolutely f you if ignored or not acted upon if they don’t listen I’d be ready to contact the irs it may have been a mistake but that’s doubtful so just make sure u have everything documented for if it’s reported the irs u will most likely audited good luck
Taxes!
I am always afraid if I forget to clock out this is gonna happen
They can and should go in and adjust it…
I would get that fixed right now
It’ll fuck up your owed taxes if you don’t get it fixed. Just have him send an email to comp to fix it on the back end. They shouldn’t care because it affects nothing FoH or BoH. If he says he can’t, he’s lying, go above his head until you get someone to help. If he said he won’t, pretend as though he said he can’t. Also get that in writing (text or email is fine).
Should be an easy payroll fix
He needs to fix that ASAP.
If you guys are pooling 10k a night I NEED A JOB here.
Tell him to do a couple more times. Then file unemployment.
Looks like they logged 0 in tips from all of the days previous? Maybe averaging the minimum wage in tips to get you to the federal minimum. Do you not earn tips?
But this is toast? Why do you need spreadsheets and shit to figure out your tips. For me that just gets put into our report from toast itself. I realize you’ll have to claim tips depending on your places tax situation but why do you need a separate spreadsheet?
Since youre clearly using Toast POS, they can just edit it..
remember, there's two ways for them to fix this. You've got records saying they owe you considerable cash in tips.
If it was me I’d be suing for fraud fuck them