Tips on Paycheck

[jnh978]

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

My employer has begun paying charged tips on paychecks instead of allowing the employees to receive it in cash at the end of the night.

We still get paid the same although more tax is withheld.

Is there any law anywhere that specifies whether employers can do this or not?

 

[Andy0192]

We still get paid the same although more tax is withheld.

Is there any law anywhere that specifies whether employers can do this or not?

Tips are to be reported (and taxed). Your employer is under no obligation to help you hide cash from the IRS.

 

[spxa99]

Tips are to be reported (and taxed). Your employer is under no obligation to help you hide cash from the IRS.

Thank you for your response. You are misunderstanding the sitution. Let me explain it better.

Old situation:

Credit Card tips are paid to the employees in cash at the end of the night. The charged tips are then "added" to the paycheck for taxation. So in effect our hourly wage is paid on our paycheck however tax is being withheld on both the hourly wage AND the charged tips. All tips are being declared and taxed.

New Situation:

Credit card tips are NOT paid in cash to the employees at the end of the night and are paid to the employee on her paycheck along with the hourly wage. All tips are being declared and taxed.

Everybody is being paid the same but it is just done differently.

The hotel is not doing anything unreasonable however we prefer to have our tips paid to us at the end of the night.

Just wondering if there is any law regarding this.

 

[pattytx]

Legal.
http://www.dol.gov/whd/regs/compliance/whdfs15.pdf

 

[Zigner]

Thank you for your response. You are misunderstanding the sitution. Let me explain it better.

Old situation:

Credit Card tips are paid to the employees in cash at the end of the night. The charged tips are then "added" to the paycheck for taxation. So in effect our hourly wage is paid on our paycheck however tax is being withheld on both the hourly wage AND the charged tips. All tips are being declared and taxed.

New Situation:

Credit card tips are NOT paid in cash to the employees at the end of the night and are paid to the employee on her paycheck along with the hourly wage. All tips are being declared and taxed.

Everybody is being paid the same but it is just done differently.

The hotel is not doing anything unreasonable however we prefer to have our tips paid to us at the end of the night.

Just wondering if there is any law regarding this.

Nope - but you are in this great country of America! You are free to find a job that is more to your liking!