Burner account and on mobile …
I’m a server at a franchise restaurant. At the end of each shift, our credit card tips are already documented in the computer, and we’re required to enter the total amount of tips to claim for tax purposes, including cash tips (which is basically an honor system), and that amount is stated on our paycheck. Obviously many servers don’t claim their cash tips, but I personally do because I’m in the process of buying a house, and I need all the proof of income possible for my home loan. Well, today I noticed that my claimed tips didn’t match up for what I actually made the past 2 weeks. The amount was a lot lower, so I looked back at my previous paychecks and realized the same thing.
First off, I take full responsibility for not being more attentive to the tip amounts on those checks. I always confirm my hours and pay, but it never really thought that my employer would alter the tips I claimed, especially a lower amount, so it never dawned on me to add up those figures.
I bring this up to the owner, who basically tells me they do this to “help the servers”, that way we pay and owe less taxes. I explained to them that I never asked for them to do this, and it’s basically screwing me on my home loan because my paychecks are showing that I’m making less than I really am. My employer says it can be fixed, which confuses me because now my paychecks won’t add up for the previous taxes that I didn’t pay, and now won’t I owe more on my next paycheck to make up for it?
Fortunately, for me, I’ve kept all of my check-out receipts for every shift I’ve worked, so I can prove I claimed more than what is stated on last 3 checks, which will obviously work in my favor for my loan. However, isn’t what my employer doing illegal? I mean, what right do they have to alter the amount of MY claimed tips? Can they actually do that? I could maybe understand if they adjusted it to a higher rate (didn’t claim the min CC tips recorded by the POS system), but lower? And the fact that they didn’t even ask or say anything to me about it, which is what irritates me off the most. I find it hard to believe they’re doing this to “help” their staff, and I feel it has something to do with their own benefit when it comes to taxes. I’ve tried to do some research on it, but nothing solid really comes up, and I’ve never had an employer who’s ever done this (to my knowledge) in the service industry.
This has put a very sour taste in my mouth with this employer, so I will most likely be parting ways with them after I close on my house, but do I report them? I don’t want to screw over my co-workers because I do see how it’s beneficial to those who don’t need to prove income for anything, so do I just tell them? I’m not trying to be in anyone else’s business, but I would feel so bad if one of them were in my same position and didn’t realize what’s happening. I’m open to suggestions and advice, so please feel free to share!
Also, if there’s anyone who’s ever been in this situation, or does has any knowledge/experience, that can shed some light on it for me, I would greatly appreciate it.