Tracy;

Our daughter has been working this summer waiting for UCLA to open. She works at a nice (expensive) Italian restaurant, and receives minimum wage plus a percentage of tips. The percentage is 50%, with the “rest going to the bus boy, dishwasher, bartender, etc.”

What happens is that the manager takes all tips and gives the workers a percentage. The other employees went to our daughter to complain, “the manager keeps the tips”! The other employees tend to screw up as much as possible to retaliate, which reduces the amount of the tip given. Ask for water and never get it is a favorite!

According to the IRS the primary person receiving the tip is responsible for 8% and must define what is termed “payout”, which is the amount received and by whom, from the total tips received. What an accounting nightmare!

Since the manager keeps the rest of the tips our daughter told the manager she will report that the restaurant received the “payout”. I expect star wars any day but school is about to begin. I can read the headlines; "IRS to audit Italian restaurant". The manager takes in over $1000 a day in tips he does not give to employees. I guess it is a benifit! I guess it beats selling drugs! :)

Having anything to do with business, the public and especially food, can be difficult!


Tom