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New Member
posted Jan 17, 2024 11:30:43 AM

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
Level 15
Jan 17, 2024 11:42:57 AM

You could look for a new job.

Expert Alumni
Jan 17, 2024 11:52:38 AM

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. 

Level 15
Jan 17, 2024 11:53:21 AM

"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%. 

Level 15
Jan 17, 2024 11:56:31 AM

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