Credit Card Transaciton Fees Deducted from Tips

Quote:

---

Quoting Amber Merideth

---

There are 7 servers on the staff roster and we all make 2.25 and hour. We all have to pay 2% of our credit card tips received (to the house). Unfortunately, we cannot tell our customers to pay in cash because it is widely advertised that we take ALL credit cards. We are also required to tip out our bartenders at the end of the night as well (this I know is practical and I am okay with). It is just frustrating because I am one that has the highest # of sales including alcohol and I'm ending up having to tip out close to 20 a day which in some cases has been close to 50% of my total tips for the day. *shrug* I will always be in the market for another job, but it is really hard to find a job despite my 12 years of experience due to my appearance.

---

If your total tips are 40.00, and you are tipping out 20.00, only 80 cents of that is going to the house for the 2% on your credit card tips. Because 2% of 40.00 is 80 cents.

I'm aware of how to do the math for my credit card tips. I just find it odd being as this the only restaurant in my 12 years that has ever charged that. I also find it odd (I just noticed this last night) that on my pay slips they aren't putting my claimed tips/ actual tips earned on there. I may be just overly paranoid, but I don't like what I have found.

Quote:

---

Quoting Amber Merideth

---

I'm aware of how to do the math for my credit card tips. I just find it odd being as this the only restaurant in my 12 years that has ever charged that. I also find it odd (I just noticed this last night) that on my pay slips they aren't putting my claimed tips/ actual tips earned on there. I may be just overly paranoid, but I don't like what I have found.

---

So, you are saying that they are not including your reported tips into your income and taxing your income accordingly? If so, THAT is definitely a problem.

I just noticed it last night on my most recent pay stub and I even confronted the owners about it today. They told me,

"It is your responsibility to claim/ report/ pay taxes on your tips at the end of the year. Our accountant that handles our payroll doesn't handle that type of thing."

If things are not adjusted on this next pay stub, then I would like to take action; however, I do not know what to do or who to contact. Especially considering I am extremely broke! Ha ha ha.

Quote:

---

Quoting Amber Merideth

---

I just noticed it last night on my most recent pay stub and I even confronted the owners about it today. They told me,

"It is your responsibility to claim/ report/ pay taxes on your tips at the end of the year. Our accountant that handles our payroll doesn't handle that type of thing."

If things are not adjusted on this next pay stub, then I would like to take action; however, I do not know what to do or who to contact. Especially considering I am extremely broke! Ha ha ha.

---

That is absolutely NOT true. They are required to include your tips on your paycheck and withhold taxes, and pay the employers share of social security and medicare taxes. If they do not do this, they are in violation of the law. I suspect that they are also paying you a gross wage instead of showing your hours and the amount paid per hour.

You should report them to the IRS and to the DOL.

However the 2% on the credit card tips is still legal.

They show my total hours and are taxing my wages, but I fear they are not balancing out the tips and wages to meet minimum wage. I just don't want to get in trouble by anyone, anywhere.

You have two choices, Amber.

You can report it.

You can do nothing.

If you do nothing, nothing will change.

Up to you.

Quote:

---

Quoting cbg

---

You have two choices, Amber.

You can report it.

You can do nothing.

If you do nothing, nothing will change.

Up to you.

---

I will report it but I'm just worried that I will be getting in trouble as well. I definitely cannot afford any (more) financial woes. I do appreciate all the advice and help from everyone! I am so glad I found this website/ forum.

Quote:

---

Quoting Amber Merideth

---

I will report it but I'm just worried that I will be getting in trouble as well. I definitely cannot afford any (more) financial woes. I do appreciate all the advice and help from everyone! I am so glad I found this website/ forum.

---

Take your paystub and go to a local tax office that is open year round. Explain to them about your concerns and ask them to take a look at your paystubs. You can also take your gross pay and divide it by the hours shown on the paystub (assuming the hours are correct) to see what it equals per hour.

You won't get in any trouble other than you will get stuck with paying their share of social security and medicare taxes come tax time if they are doing it wrong.

I just did the math and they are ONLY paying me 2.25 an hour taxed. No minimum wage balance, no claimed tips. Nothing. Now, I am really upset. I know I have definitely not made tips to cover minimum wage, especially the last two pay periods. :grumpy:

- - - Updated - - -

I guess my question now is how do I go about reporting them to the IRS and DOL?