Tipping and taxes

Restaurants report a percentage (around 12%) of the gross sales for food and beverage to the IRS for their staff.

This means that if you have a $200 food bill and $200 wine bill, the restaurant will report 12% of $400 or $48 as income to the server. In other words, the server has to pay tax on it whether you tip it or not.

If the restaurants do not report it accurately, the restaurant and the wait staff get audited by the IRS.

From: findalink.net

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