What is the name of your state? Massachusetts
I work in a restaurant and management has just implemented a new tip declaration/tip out policy.
On our paychecks, they are declaring:
100 % of our credit card tips (minus the amount that is tipped out to others)
and
10 % of our cash tips (minus the amount that is tipped out to others)
In the hopes of avoiding an audit, management wants all of the tips declared (from all tipped employees) to equal 18% of the total sales from the restaurant.
If the amount declared from the above calculation does not equal 18% of sales, they will ADJUST the declaration to meet 18% of total sales.
In the last pay period this occured but my tips were incorrectly and grossly overstated by about $700-$800.
I spoke with management about this and they said that they will try and find a way to hold back $700-$800 over the next few pay periods. I am concerned because I have little confidence that this will happen as the tip declaration system is very confusing and there are many employees.
My questions are:
1) Is it legal for them to adjust my tips to meet their 18% of total sales requirement? Is it legal for them to adjust my tips in general?
2) What if I do not get the $700-$800 recouped in future paychecks? Can I file a substitute W-2 come tax time (for the 2006 tax year)? What are the consequences of this?
Thank you for your responses!
I work in a restaurant and management has just implemented a new tip declaration/tip out policy.
On our paychecks, they are declaring:
100 % of our credit card tips (minus the amount that is tipped out to others)
and
10 % of our cash tips (minus the amount that is tipped out to others)
In the hopes of avoiding an audit, management wants all of the tips declared (from all tipped employees) to equal 18% of the total sales from the restaurant.
If the amount declared from the above calculation does not equal 18% of sales, they will ADJUST the declaration to meet 18% of total sales.
In the last pay period this occured but my tips were incorrectly and grossly overstated by about $700-$800.
I spoke with management about this and they said that they will try and find a way to hold back $700-$800 over the next few pay periods. I am concerned because I have little confidence that this will happen as the tip declaration system is very confusing and there are many employees.
My questions are:
1) Is it legal for them to adjust my tips to meet their 18% of total sales requirement? Is it legal for them to adjust my tips in general?
2) What if I do not get the $700-$800 recouped in future paychecks? Can I file a substitute W-2 come tax time (for the 2006 tax year)? What are the consequences of this?
Thank you for your responses!