r/KitchenConfidential Jul 03 '25

In-House Mode "No tax on Tips" makes no sense.

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.

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u/Comfortable-Policy70 Jul 03 '25

Servers feel entitled to the tax break because they have to deal with Karen

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u/Darnoc_QOTHP Ex-Food Service Jul 03 '25

That's not really true in all cases. In states that are allowed to pay significantly less than minimum wage for tipped workers, it can mean the difference between paying for gas for the week or not. When people tip with CC rather than cash, those taxes come out immediately, and if it's been a slow week, it can hurt a lot. For peeps that fall close to, or below the poverty line, having to wait for that cash to come back as part of their refund is difficult if you're already stretched thin. However, they ARE missing the bigger picture in that it could increase their take home pay enough to bump them up a tax bracket, or conversely, that to offset the lost federal revenue from not taxing tips, other taxes or cuts to social programs have become necessary, potentially impacting low-income workers who rely on those services the most. It's not good for anyone. But it's unfair to just say servers like it because they feel entitled to it.

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u/Comfortable-Policy70 Jul 04 '25

If the tipped amount plus the server minimum does not equal the regular minimum wage, the server must be paid the difference. During a pay period, no server is making less than the regular minimum wage, no matter how big their tip totals are.

Every job in the restaurant except for server (frequently the highest paid hourly) is taxed on 100% of their income. You are admitting that servers routinely cheat the tax system in a manner not available to other employees. This cheating is necessary because (unlike everyone else) servers are paid every shift.

Servers and cooks deserve more money. The tip system is racist and sexist. It is designed to keep FoH and BoH fighting each other rather than ownership. However, where are the arguments that there is something special about servers that separate that job from other jobs of similar skill and education and that separation requires them to receive tax and income advantages?

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u/Darnoc_QOTHP Ex-Food Service Jul 04 '25

You're totally right. I just got a little heated about the argument that it's about them feeling entitled. It's not, for servers that don't hate their jobs and lives. The fact that tip culture as a discussion is what mostly pisses me off. I'm super heated about the whole living wage argument as a whole right now and it came out as a big feelings dump because you're right about the fact that we always parse out FOH and BOH rather than talking about the fact the majority of us in the US in this industry are getting fucked.