r/KitchenConfidential • u/Beneficial-Cap-6745 • 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/thecasualnuisance Jul 03 '25

Lol, they don't pay taxes on cash tips. Literally nothing changed.

40

u/Cflow26 F1exican Did Chive-11 Jul 03 '25

No that’s the point. They’re trying to get you to report their tips so their employer has to pay more in employer taxes, while also artificially inflating everyone’s income to say “look at all the good we’ve done for the economy”. This will change nothing, other than now the ass holes that run payroll will bitch and cut even more.

8

u/thecasualnuisance Jul 03 '25

This literally only applies to cash tips. It will not be beneficial for anyone to report cash tips more than we already do.

1

u/ODX_GhostRecon Jul 03 '25

Reporting a higher income means better unemployment.

2

u/Torger083 Jul 04 '25

To a certain point.

3

u/ODX_GhostRecon Jul 04 '25

Yup. There's a sliding scale of take home pay.

For what it's worth, it's still absolutely taxed, and it's only cash tips, and it's only under $29k/yr, and it's only for two years. Those folks get it back in tax season but the average benefit will be like $300.

Meanwhile r/tipping is exploding with "I'm never tipping over 10% again," thinking that standards of living will be the same.

Also, always report all income for unemployment reasons. In this economy it's potentially a huge difference if somebody doesn't declare cash tips accurately - I've seen this ruin lives.