Integraoligist
New member
IL Minimum Wage
Regular $8.25
Tipped $4.95
So at my first pizzeria when we delivered 8 years ago, we paid a little above minimum, say $5.25hr. then added the drivers Tips and pulled taxes. However, there was always an issue with drivers not giving us the correct amount of tips they had actually received… and by IL law, if the tipped employee does not make at least the $8.25hr with the tips for that said hour, then the employer pays the remainder.
So to combat this, here is an example of what our accountant did:
Hourly Rate: $5.25 @ 8hr = $42
Tips: $3 @ 8hr = $24
Total $66
Then taxed the $66
This way their tips are “assumed” to be just enough to cover minimum wage and taxed correctly.
So my question is, does anyone else pay like this? Or what other ways are you able to pay?
Regular $8.25
Tipped $4.95
So at my first pizzeria when we delivered 8 years ago, we paid a little above minimum, say $5.25hr. then added the drivers Tips and pulled taxes. However, there was always an issue with drivers not giving us the correct amount of tips they had actually received… and by IL law, if the tipped employee does not make at least the $8.25hr with the tips for that said hour, then the employer pays the remainder.
So to combat this, here is an example of what our accountant did:
Hourly Rate: $5.25 @ 8hr = $42
Tips: $3 @ 8hr = $24
Total $66
Then taxed the $66
This way their tips are “assumed” to be just enough to cover minimum wage and taxed correctly.
So my question is, does anyone else pay like this? Or what other ways are you able to pay?
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