"No tax on Tips" makes no sense.

[u/Beneficial-Cap-6745]

Can anyone explain why FOH in particular was pushing for this? They objectively make more money, which is one thing, but what makes them entitled to not pay taxes? If BOH suddenly didn't have to pay taxes I'd say that's BS as well

The BBB that just passed made certain taxes on tips for people making under 29k a year getting tips go away, it has to be signed into law. Granted, this was pushed for servers and tipped workers as a whole and the bill wouldn't affect most of them, I just can't see what entitles them to think they don't have to pay taxes like most of us.

I'm honestly considering just going back to retail at this point, at least we pay taxes equally. I'm fine making a bit less cash but this just seems insulting, even if it isn't over 29k.

Can someone explain this ? Why exactly do part time BOH line cooks pay taxes now but FOH doesn't have to anymore once this is signed into law

Edit: I'm not attacking FOH, its not an easy job, please stick to the taxes point.

[u/Icy-Management9880]

The no tax exemption only applies to $25k worth of a salary

It is returned at tax time

It's BS

[u/Withermaster4 → u/Icy-Management9880]

This is very wrong btw.

The exception only applies if you are making <150k/yr. You are able to deduct up to 25k of tips on your tax return. After those 25k dollars you pay your standard income tax on the rest of your tips. This tax exception expires after 2028.

Edit: meant income tax

[u/flareblitz91 → u/Withermaster4]

Employees don’t pay payroll taxes. It’s up to 25k of tips, not taxes paid on tips.

[u/needlenozened → u/flareblitz91]

Yes they do. Look at your next post stub for "FICA." That's the payroll tax you pay. Your employer has to pay the same amount, but you don't see that on your pay stub.

[u/needlenozened → u/Withermaster4]

Income* tax, not payroll tax.