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    luvpink67's Avatar
    luvpink67 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Jan 15, 2013, 01:18 PM
    Free accountant question
    Restaurant Business: Server declares their tips and is taxed on them. Every night they are required by the business to give the bartender 4% of alcohol sales in cash. No record of this. So the Server is being taxed on money given to the bartender. The bartender is collecting "cash" and not having to claim this as wages. Does this sound correct?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Jan 15, 2013, 10:45 PM
    No, not unless the bartender is unusually honest and claims the cash as miscellaneous income on his tax return.
    MukatA's Avatar
    MukatA Posts: 7,110, Reputation: 176
    Tax Expert
    		  
    #3

    Jan 16, 2013, 12:06 AM
    Declare your tips amount after subtracting the amount given to the bartender.
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #4

    Jan 16, 2013, 06:00 AM
    MukatA's answer is accurate.
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