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Omaha Steve's Labor Group

PoliticAverse

(26,366 posts)

1. "Because a service fee is categorized as income, Hammel must pay taxes on it"

Reply to Yo_Mama_Been_Loggin (Original post)

Mon Sep 20, 2021, 10:18 PM

Sep 2021

Because a service fee is categorized as income, Hammel must pay taxes on it, while forgoing a federal tax credit for employers who pay the tipped minimum wage.

Once again, tax law provides disincentive to people who want to improve things.

And a tacked-on charge can offend potential customers who bristle at the idea of an obligatory tip, regardless of the quality of service they receive.

Because it is a "obligatory tip". Why would a customer be in favor of that?

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Highlight:

How to Make an Unloved Job More Attractive? Restaurants Tinker With Wages. [View all] Yo_Mama_Been_Loggin Sep 2021 OP

"Because a service fee is categorized as income, Hammel must pay taxes on it" PoliticAverse Sep 2021 #1

Because they're progressive? quaint Sep 2021 #2

Actually no, lots of places in the world don't have tipping, mandatory or otherwise. PoliticAverse Sep 2021 #3