Dubweiser, do you know more about how the income taxing works for tips? Is it considered like a bonus and taxed close to 50%? Are they taxed based on 15%tip or or 8%?
Cuz it's one thing to sell 10K, then 3% goes to the rest of the staff (300$), and the governement taxes you 50% based on a hypothetical 15% received in tips (1500) which means 750 goes to the gov thus leaving the waiter with 450$....which means he needs to make an average of at least 10.5% in tips just to break even.
But
If he is taxed 16% on 8% of sales, that's 128$ + 300$ for the other staff (is the 3% a rule/law or does this vary from place to place?) that means he breaks even at an avg tip of 4.13%.
Big difference.
earning is earning ... no special taxes on bonus ... if they take near to 50% is because the earning for the period (ex. 2 weeks) is high as a MR ballers salary ... don't worry if you don't have Mr ballers year income, you will have a taxed return at the end of the fiscal years ...
that's how deduction at source works