Reporting driver's tips to the IRS

[piemaker2007]

royster13:

This looks “messy ugly”…It looks like the “Allocated Tip Program” only covers the employer…You are reporting tips so you do not get in trouble with the IRS but this is still not a declaration by your employees…That seems to be another issue all together…So just by you reporting 8% does not solve the minimum wage dilemma…

When I worked as a driver we had to keep a tip log. Drivers/wait staff that where were constantly reporting zero foudn themselves on a performance plan, after that if they were otherwise good employee’s they were moved to another job position, or sent on their merry way. Ultimately though competition for drivers in that area made their base pay exceed minimum by that time I didn’t work there anymore so I don’t know if they kep the same policies.

PM