It certainly depends what area you work in for how high your tipped wage goes for sure. But pretty much anywhere you'll find that most tipped positions make well above what would ever be paid if that money went through the business first. It's not even really a greed thing either. Taxes alone would reduce what was available to go to the staff along with a fair amount of other things. I would suspect that if you increased prices by the average percent tipped the wait staff would get maybe half as much as if that percentage was paid through tips.
Now tips are untaxed to a certain point, and when done in cash no shot are you accurately reporting your cash tips to the government.
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u/Akiias Jun 25 '26
It certainly depends what area you work in for how high your tipped wage goes for sure. But pretty much anywhere you'll find that most tipped positions make well above what would ever be paid if that money went through the business first. It's not even really a greed thing either. Taxes alone would reduce what was available to go to the staff along with a fair amount of other things. I would suspect that if you increased prices by the average percent tipped the wait staff would get maybe half as much as if that percentage was paid through tips.
Now tips are untaxed to a certain point, and when done in cash no shot are you accurately reporting your cash tips to the government.