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Thread: Servers and Claiming Tips...Help

  1. #1
    Junior Member
    Join Date
    Nov 2005

    Question Servers and Claiming Tips...Help

    I work in Arizona. My employer makes us claim 12% of our cash and 12% of our credit cards. My questions are:
    1. The IRS says servers have to claim 100% of tips, so how can an employer make you claim a certain percentage?
    2. What is the deal on claiming cash and credit cards seperately? Can't you claim "one" percentage for both? And can the IRS "actually" track the difference in cash and credit cards?
    3. I thought the percentage to claim is always 8%? How can an employer make you claim more, if that is all the IRS asks them to show proof of?
    4. I understand tip allocation, but isn't tip claiming my own business and that of the IRS? How can my employer force me to claim 12%. Seems illegal for them to make me claim any percentage besides 100%. And what's in it for them to be so concerned about what their servers claim in tips?

  2. #2
    Senior Member
    Join Date
    Jul 2005


    You can only claim what you take in, both cash and credit card tips. They're talking about claiming a percentage of the check, not a percentage of your tips. If you are required by your employer to claim more tips than you take in, I would recommend contacting the IRS. Also, make sure to keep an accurate daily tip diary.

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