My husband worked for a restaurant where the servers very rarely clocked in. They also never reported tips. They were encouraged not to clock in, and would be taken off the schedule if they were showing to many hours, were not even talking overtime here. They also had no formal tip reporting in place, and only in the last final few weeks he worked here did he ever report any tips. (at the time he was leaving, management finally started requiring this) This place was always a chaotic disaster.
He occasionally received paychecks which were always zero.
Now we received his W-2 and we owe $1,300 in taxes for high total tips reported and barely any hourly wage paid.
He definitely didn't report the amount showing on the W-2... Management must have calculated it themself, we have no idea...
During the time he worked there the company was bought under a new name. This didn't take place until the end of his term.
Also, During the end of the year they were given $100 check for compensation for some "mistake" they made.
I can't make heads or tails of this mess. I want to call corporate office but I don't even know where to start. Originally I thought there was just an error in the W-2, but now looking further I see there was a lot more going on. I know they were doing illegal things, and I don't assume the restaurant would fix this without legal action... Does anyone have any insight on this?
I'm wishing there was some kind of quick fix for NOW and us having to get the taxes in... If I report this to the IRS and they audit them then what? Do I pay these taxes and hope for some recourse later?
Would some kind of wage audit fix our tax problems? Would that prove they owed him a lot of wages? Would some of the taxes owed be the restaurants responsibility since the wages would have been gradually paying the tax on the tips?
Does anyone have any insight on this??
He occasionally received paychecks which were always zero.
Now we received his W-2 and we owe $1,300 in taxes for high total tips reported and barely any hourly wage paid.
He definitely didn't report the amount showing on the W-2... Management must have calculated it themself, we have no idea...
During the time he worked there the company was bought under a new name. This didn't take place until the end of his term.
Also, During the end of the year they were given $100 check for compensation for some "mistake" they made.
I can't make heads or tails of this mess. I want to call corporate office but I don't even know where to start. Originally I thought there was just an error in the W-2, but now looking further I see there was a lot more going on. I know they were doing illegal things, and I don't assume the restaurant would fix this without legal action... Does anyone have any insight on this?
I'm wishing there was some kind of quick fix for NOW and us having to get the taxes in... If I report this to the IRS and they audit them then what? Do I pay these taxes and hope for some recourse later?
Would some kind of wage audit fix our tax problems? Would that prove they owed him a lot of wages? Would some of the taxes owed be the restaurants responsibility since the wages would have been gradually paying the tax on the tips?
Does anyone have any insight on this??
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