Re cash- they "assume" a certain average percentage of your total sales-- yup! If you sell $1000 of product, the IRS determines that you were tipped on those sales-- the % differs, where i am they assume 10-12% ...
So i am taxed on $100-120 whether I receive those tips or not. It is bullshit- the $ given to ANYBODY as a tip HAS ALREADY BEEN TAXED! tip=GIFT
Re cash- they "assume" a certain average percentage of your total sales-- yup! If you sell $1000 of product, the IRS determines that you were tipped on those sales-- the % differs, where i am they assume 10-12% ... So i am taxed on $100-120 whether I receive those tips or not. It is bullshit- the $ given to ANYBODY as a tip HAS ALREADY BEEN TAXED! tip=GIFT
Tip=gift sounds like something the courts should look at.