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Question: 1099 employee getting all credit card tips taxed by “employer”

Can your “employer” or” place of work” tax your tips if you are 1099? For clarity, in CO, my grandmother works at a nail salon doing mani pedis, (doesn't need to, just a way for her to get out of the house and socialize, cultural thing I suppose). She was telling me the other day her boss taxes all of her debit and credit card tips before paying her out. She then proceeded to tell me she is now being taxed on cash tips by the owner. Is this legal? Seems to me like she's getting double taxed. I know its a 60/40 split between her and the owner on the cost charged to customer, she buys her own supplies and it is a cost of being able to do business there. She bitches about only making 40k or so a year (and she's easily there full time, again mostly…


Can your “employer” or” place of work” tax your tips if you are 1099?

For clarity, in CO, my grandmother works at a nail salon doing mani pedis, (doesn't need to, just a way for her to get out of the house and socialize, cultural thing I suppose).

She was telling me the other day her boss taxes all of her debit and credit card tips before paying her out. She then proceeded to tell me she is now being taxed on cash tips by the owner. Is this legal? Seems to me like she's getting double taxed. I know its a 60/40 split between her and the owner on the cost charged to customer, she buys her own supplies and it is a cost of being able to do business there. She bitches about only making 40k or so a year (and she's easily there full time, again mostly for fun, Gpa got that military pension+agent orange). Some of the other middle age employees are supporting families off this shit and driving pretty decent cars (think middle age Asian man with three kids in a 2018 lexus rx doing nails, and colorado is not cheap to live in right now) so I really feel like something's off and my grandma being naïve and not needing to really care about the money is screwing her.

posting here after reading through another thread and seeing some comments about some tip embezzlement/fraud, figured there were some people here that knew their shit, or maybe some in the industry. Sorry if this is not the place.

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