Thanks for the response. I agree that this is a gray area as to if these are tips or another form of wages. Two things make me lean toward these being tips.
1) If wages, why bother showing wages and tips separately on his check stub? Both are included in his total earnings and pays FICA and medicare tax on these tips.
2) All tips, both cash and on credit cards, from all employees are turned into the owner. It appears the way he distributes tips back to all employee's based on their job category seems to be an attempt to fairly distribute all tips back to the employees in a simplified manner.
Anyway, I bet this is one of many unusual situations that the OBBB didn't contemplate. Any other thoughts from the community? Thanks again.
