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iceflame1211 t1_iu38ekb wrote

Reply to comment by kubabooba in Would you Tip the same or at all, if the service industry workers earned states minimum wage or more. That be the case if the Question D in Portland passes. by kubabooba

>it be standard minimum wage not a Tip credit as now.

Correct. The tipped wage would go away, which is not... exactly the same thing as a the tip credit*.

I believe most servers (and restaurant owners for that matter) do not want the tipped wage to go away. I know when this issue came up in Augusta a few years ago state-wide, the turnout was hundreds if not thousands, and the hearing went well into the night, overwhelmingly in favor of the restaurant industry. The people speaking against it largely all had zero actual restaurant experience.

I simply don't see a problem with the way things are for servers/bartenders in Portland right now. They regularly earn much more than their back of house counterparts, who also are earning at least minimum wage.

*Sidenote:A lot of people confuse some of these terms, but the federal tip credit is actually something the employer files for with their taxes, as the employer pays their side of ss/other taxes on the employee's tips earned all year. This is different than the "minimum wage for tipped employees", which is set by state. This is also very different from the "subminimum wage", which is often used but very wrong. That's something an employer needs to specially apply for from the state for permission to pay, for certain categories of workers who may not have other opportunities to work. They can legally pay subminimum wage workers less than minimum wage. Tipped employees are not subminimum wage workers, but you will often see that term misused- sometimes even in published news.

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kubabooba OP t1_iu39sre wrote

That’s for additional info, this is great. Would you happen to know if it is legal to work on states minimum wage and also file your taxes with tips under tip credit

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iceflame1211 t1_iu3a1he wrote

I'm not sure I understand the question. The tipped employees don't file anything special regarding a tip credit - only their employer. Tipped employees only get a w-2 to file their taxes, like most employees.

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kubabooba OP t1_iu3aeh9 wrote

Sorry I had a hard time wording the previous question. Let me try again. So tip workers are supposed to claim their tips on taxes because they are a tip credit worker. Would they be able to claim tips in the same way if they were not a tip credit worker and just an hourly employee.

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iceflame1211 t1_iu3aum2 wrote

>So tip workers are supposed to claim their tips on taxes because they are a tip credit worker

Tip credit workers essentially claim all of their tips after every shift, but at least every pay period. The employer needs to know if they made above minimum wage. If I worked a 5 hour shift at $13/hr, when I clock out I'd tell them I made $10 or $100. Both would be on my paycheck, in different categories, and both would be included on my W-2 at the end of the year.

If they were "just an hourly employee", then they probably wouldn't make tips. If you mean what if they earned minimum wage hourly + tips, then they'd be expected to claim tips in the same way when they earned tipped wage + tips. Any worker in any field, like a hair stylist or taxi driver, who is in a habitually tipped position, is supposed to legally claim all of their tips as income.

[edit] this is assuming by "tip credit worker" you mean "minimum tipped wage worker"... which again, nuances, but those can be different things =)

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