My Rant! TIP jars at fast food joints!

[GaryS]

Of course they go to the owner and he has to pay them forward to the Government just like our sales taxes etc. That's how the Government gets the money to pay their equivalent of SS and socialized medicine. If the waiter keeps them, he/she is stealing from the government.

I'm sure that the owners report all of that to the government and pay full taxes on it.

OTOH, if you're a waiter or waitress the IRS expects you to declare your tips as income and pay taxes on it. They probably have a formula based on number of hours worked and type of restaurant. Even at that, most people under report their tips.

When I pay by credit card, I generally ask the server if they want the tip in cash or on the card. I've yet to have one say they want cash. I don't know why, but I'm sure there's a reason.