Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
New Member
posted Feb 5, 2020 6:35:59 PM

Server Tipouts

My employer doesn’t deduct what we tip out to other employees. 
For example if I make $160 in tips that night but had $200 in alcohol sales we have to tip them 10% of the $200 and then tip out the food helper $5 every night. So that’s $25 that I am claiming that I didn’t receive. They claim it evens out because we only claim 10% of our cash sales but I don’t think it does because 97% of our tabs are paid with a credit card and tipped on credit. 
How can I get them to fix this? I’ve keeping track of what I make and what I tipped out. I used an online paycheck calculator and entered the number they had minus my tip outs and my checks were Higher. 

0 2 599
2 Replies
Employee Tax Expert
Feb 5, 2020 7:14:55 PM

If you can't get your employer to adjust the amount reported on your W-2, you would have to file a complaint with your state's department of labor and/or the IRS.

Level 15
Feb 6, 2020 9:54:39 AM

I agree with reporting them, and the fact you said "we only claim 10% of our cash sales" is concerning as well.

 

If your employer refused to correct things, you can fill out Form 4853 as part of your tax return and use the proper amounts that you received.  Should should be able to type "4852" in the search box within the program.

 

https://www.irs.gov/pub/irs-pdf/f4852.pdf