My personal conspiracy theory behind the covid-era spread of tipping culture was to get employees to accept tips as a part of their income. Once it reaches a certain threshold you’re legally allowed to pay the real minimum wage because the rest is subsidized by the customer.
Cash tips are pretty rare now though and paid via card those tips are getting reported and taxed. Plus the employer has to pay you minimum wage if your tips + wage < min wage so employers were definitely making sure employees reported enough tips even in an all cash environment.
My personal conspiracy theory behind the covid-era spread of tipping culture was to get employees to accept tips as a part of their income. Once it reaches a certain threshold you’re legally allowed to pay the real minimum wage because the rest is subsidized by the customer.
Didn’t Trump make a whole song and dance of promising “No Tax On Tips” in order to get people to report their tipped income?
Lol which is so silly because you already won’t be taxed on tipped income if you don’t report it 😂
Cash tips are pretty rare now though and paid via card those tips are getting reported and taxed. Plus the employer has to pay you minimum wage if your tips + wage < min wage so employers were definitely making sure employees reported enough tips even in an all cash environment.