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tbwade13
New Member

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

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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4 Replies

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

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
Employee Tax Expert

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

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

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

"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%. 

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

it's probably legal under Federal law but states have their own rules. This is an employment question. consult a lawyer familiar with labor laws 

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