This past week, voters in Washington, D.C. elected to raise the minimum wage for tipped workers to minimum wage by passing Initiative 77. Wait aren’t they already receiving minimum wage? Sort of. While the federal minimum wage is $7.25 per hour, the minimum wage for an employee who receives at least $30 per month in tips is only $2.13 an hour. This does not mean that an employee who works a 40 hour week is only going home with less than $100 gross. The employee is expected to receive tips that bring them up to the regular minimum wage, and should that…
Posts tagged as “Tips”
The Credit For Portion Of Employer Social Security Paid With Respect To Employee Cash Tips, or Excess FICA Tax Credit on Tips, for short, to be exact. If you are familiar with this tax credit, then congratulations, you are one of the few (just be sure you are not a victim to the ‘Confusions’ I point out below). The IRS recently reported that for tax 2012 (yeah, it takes them this long to report), 66,400 taxpayers took advantage of this credit. This quantity seemed underwhelming to me, so I did some research as to how many businesses were potential candidates. …