Is there anything that can be done about my employer hitting me with credit card fees for tips received on credit or debit?

Forum|Forum|2 years ago
January 17, 2024
4 replies
14 views

I'm a bartender in Illinois and my credit card tips are added to my weekly paycheck. My employer takes a credit card fee out at 2.5% of my credit tips.

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xmasbaby0

Level 15

You could look for a new job.

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**

Vanessa A

Level 15

This is not really a tax question, but more of an employment law question, so you would get your best answer from an employment law attorney.

One thing you should do when you get your W-2 is make sure that your employer did not include in your wages the fees he kept for the credit card fees. If he did, you can request that he issues you a new W-2. If he is not willing to, then you can file a complaint with the IRS so you are not paying taxes on money you did not receive. Instruction on how to file a complaint are in this link. Call the IRS at 800-829-1040 or contact your local taxpayer advocate office to help with a complaint.

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Hal_Al

Level 15

"My employer takes a credit card fee out at 2.5% of my credit tips."

That's sounds reasonable to me. They only get to keep 97.5% of the bar tab, because the credit card company gets the other 2.5%. The same should apply to you. It may be petty, but it's reasonable and probably legal (I'm not a lawyer). They only received 97.5% of the tip, but you want them to pay you 100%.