confused

[msLioz2258]

What is the name of your state (only U.S. law)? Florida

I am in college and have a part-time job waitressing in a really busy bar/restaurant. I make $3.15 hourly and report my tips at the end of my shift via computer. I work about 35 hours a week and when I get my paycheck (I am paid every two weeks) it amounts to $0. I don't understand why I am not being paid $3.15 an hour? I asked my boss and he blew me off, saying that I make too much money in tips and my paycheck is therefore all taxed. I'm not very educated in wage law and was just wondering if maybe someone could explain to me what is going on here.What is the name of your state (only U.S. law)?

[dolebot]

Oooh goodie, your from Florida, the land that labor boards and unions forgot.

I make too much money in tips and my paycheck is therefore all taxed.

Nonsense.

Quotes are from the "Agency for Workforce Innovation" the closest thing Florida has to a department of labor.

[url=http://www.floridajobs.org/minimumwage/index.htm]Agency for Workforce Innovation[/url]

Florida's minimum wage is $7.21 per hour, effective January 1, 2009. This is up from the $6.79 per hour minimum wage in 2008.

Since you are a tipped employee:

Employers must pay their employees the hourly state minimum wage for all hours worked in Florida. The definitions of "employer," "employee" and "wage" for state purposes are the same as those established under the federal Fair Labor Standards Act (FLSA). Employers of "tipped employees" who meet eligibility requirements for the tip credit under the FLSA, may count tips actually received as wages under the FLSA. However, the employer must pay "tipped employees" a direct wage. The direct wage is calculated as equal to the minimum wage ($7.21) minus the 2003 tip credit ($3.02), or a direct hourly wage of $4.19 as of January 1, 2009.

So according to them I would calculate the minimum wage as the current minimum wage $6.79 minus the tip credit of $3.02. You should be paid at least $3.77 per hour.

You say it is $3.15/hr? Your employer would seem to be violating both the federal minimum wage, and Florida's minimum wage law.

As for why your paycheck is $0? Does he actually write you a check for $0?

Having worked for over 15 years now I'm confident in that the typical wage earner will pay about 18.5% total in taxes. This may vary a bit. Lets do the math:

$3.77/hr x 35 hours = $131.95 per week. Your paid every 2 weeks so multiply that by 2.

Your gross wages (before taxes) *should* be around $262 per paycheck. Take 18.5% off that: 262 * 0.185 = about $48 in taxes. $262 - $48 equals about $214 on your paycheck.

Is this perhaps your first paycheck and they pay behind a couple weeks?

How long have you been working here like this?

If an employer does not pay at least the minimum wage - they must pay back the employee any wages to equal the minimum wage retroactively. Your boss owes you all that back pay too.

I'm sorry to even have to ask this, but are you a US Citizen or green card holder, or otherwise authorized to work in the USA? Illegal aliens are not protected.

Might you be "working under the table?" If so perhaps you would be perfectly happy in your current arrangement, however illegal (if thats the case).

When you started working - did you fill out a W-4 form? This is where you put your social security number and claim how many exemptions. You would claim 0 or 1 if single with no dependents. (just trying to jog your memory).

It would seem that the company you are working for might possibly be dodging unemployment tax, avoiding paying federal income tax, medicare, etc.

You have a right to those back wages, you may also have further damages or awards available. I would suggest you contact an attorney. You can report your job to the states attorney general and the IRS for failing to pay minimum wage and income tax.

You cannot be retaliated against by punishment of any sort for reporting the wage violations and tax violations to the government. If they do you may be entitled to even more damages, including pay (that is base pay of minimum wage - plus your average tips) - from the time they fire you until the case is settled.

HOWEVER - I just about guarantee that if your boss finds out you ratted him out and he has to pay thousands of dollars and go to court and all that - you're fired. Expect it. Even if the reason is "we don't need you anymore".

As a sub-minimum wage employee you may not be able to afford an attorney. Legal Aid of Florida assists low income workers. They may not be able to help based on your income (you make good tips right?), and I don't see that they handle employment issues at present. Worth a look.

[url]http://www.legalaid.org/index.html[/url]

(having been in the business before) I'm willing to bet that this is a family-owned restaurant, and that all of its employees are young people, maybe even some still in high school. They are either happy to be making just tips, don't care for whatever reason (illegal, can't get other work, having wages garnished). This type of thing happens all the time. Your employer would seem to be preying on naive people, and thinking he can stay under the radar of the authorities, while taking advantage of his employees.

[msLioz2258]

i've been working there for 8 months, i'm a US citizen, i filled out my W-4, I-9, zero exemptions, etc.
it is family owned, most of the staff that works there is in college, some in high school.

my paychecks literally say $0.00. my mom said it was illegal, that they HAVE to pay me. they are definitely preying on us because we're all kids and don't know any better. i make around $300-$400 a night ****tail waitressing so i'm not struggling but i spend 2 hours after the restaurant closes doing my sidework which i'm essentially not being paid for.

every once in a while i will get a pay check for around $35 which still doesn't make any sense because i work 70 hours per pay period and my check should be for more.
it's good to hear that i'm not wrong in this - every two weeks i ask, "now WHY is my pay check for zero dollars" to which i'm told "you're making too much in tips". my roommate works there too, her checks are for zero dollars. and it's a nice restaurant - fairly upscale in a affluent part of miami.
i must say there is something awry about their business ethics - one time i accidentally declared $1.50 in tips instead of $150 and was chewed out by the owner saying " last year we were fined $30,000 by the IRS because servers don't declare their full tips"
i think they were fined for other reasons.
i graduate soon and won't be working there much longer. thanks for the information. i really thought they were wrong and i was being convinced that i was the wrong one -- so thanks for the peace of mind =)

[eerelations]

You can still get your money by filing a complaint with the federal DOL.

[Ginny J]

If her portion of medicare / social security, in addition to the federal withholding is greater than her net check, then it is possible to get a "zero" check. The key is in the deductions.

On these "net checks", is there a description of the deductions? Does it include SS/ Medicare and federal withholding?

My servers are paid $7.00/ hour, and I've seen some itty bitty checks by the time I am deducting SS/ Medicare/ federal withholding and health insurance. In that she is receiving less per hour, it is possible that she will receive a "zero" check AND have to pay additional taxes when she files her taxes to include and SS/ medicare that was NOT deductible from her net.

And yes, I'm in the land of Florida.

[dolebot]

My servers are paid $7.00/ hour, and I've seen some itty bitty checks by the time I am deducting SS/ Medicare/ federal withholding and health insurance. In that she is receiving less per hour, it is possible that she will receive a "zero" check AND have to pay additional taxes when she files her taxes to include and SS/ medicare that was NOT deductible from her net.

Very Very good to know.

OK so the SS/Medicare/federal is based on the "tipped" amount in addition to the tipped minimum wage. Now I see.

SO at $300 a night x 4 = 1200 weekly + $162 base pay is 1400 weekly The tax on that is enormous and must come from somewhere.

[pattytx]

Yep, Ginny has it right. It's not unusual for a tipped employee who makes the sub-minimum cash wage and high tips to get a net check of zero.