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[leland]

I work in a grooming salon and my employer doesn't give me tips because she says when the debit/credit tips get transferred into her bank account she gets taxed on them and there is barely anything left to where people would only be getting $30 each (something along the lines of that). Does anybody know if that is true? I tried to check the labour laws but it says nothing online and then when I called they told me the employer doesn't even have to give you tips its up to them which I find to be bs. Anyways, just wondering if what my employer says is true?

[veto]

You employer would not be taxed on those tips if they were given to you. It would require some bookkeeping on your employer's part but you would be responsible for the taxes.

Your employer does get hit with the merchant fees for processing credit and debit cards. But that is only a small percentage. Your employer is giving you a bunch of BS and pocketing your tips. Unfortunately, there isn't anything you can legally do. An employer can actually require that all tips be turned in.

Figure out a way to discretely let your customers know that you don't get tips put on cards. They can either give you cash tips or not tip at all.

[sherborne16]

Toes,

If the employer received a "tip" as in gratuity on your behalf from a customer via a credit card payment, she would not be taxed on that amount of money.

For example:
Customer pays $25 for service and adds $5 tip, total $30 is charged on customer's card.

Your employer has $25 in taxable income to her, however, the $5 is just a pass-through (it would be actually booked as an "account payable" to you).

In my opinion she has an ethical and legal liability to pay you the amount that is designated to the employee as a gratuity from the customer. Now, how would you argue this? Because she is taking money away from you and I bet the customers would not be too happy.

If I was a customer and I found out the owner was shafting the employee from a tip I intended the employee to receive, and your boss is pocketing the cash herself, I would be unhappy with a capital UNHAPPY.

Maybe you tell the owner that you really are concerned that you work hard to receive the tips, and you're sure the customer intends them to come to you. Let the boss know, that while the amount may seem small to her, it's important to you and probably important to the customer. Then say you've been thinking about it, and if it's really such an administrative hassle, we had better make sure to let EVERY customer know they can't leave tips through the credit card payments, since you won't receive them....and I'm SURE the boss would want you to receive your tips, right boss?

Let's see what she says. You might be better off to get the hell out of there and leave that lousy cheat behind.

Best of luck to you.

[abelard29]

Read the attached. Tips belong to the employee by federal law, the FLSA. There is no debate on it. Call the state department of labor.