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How does tip offset work?

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How does tip offset work?

Postby ascott87 » Sat Oct 08, 2011 9:50 pm

I recently became a server, and I don't believe this was explained to me in orientation.
This week, for instance, I made about $400 in tips, and I worked 28 hours (give or take)
When I look at my paycheck online for this Friday, it says I only receive $36 for my base wage, and in the detailed section there is $393 in the "tip offset" section
I realize that when I report my cash tips, it is a taxable income and in order to deduct the correct amount of taxes from my pay, it all has to be added together, then the taxes are subtracted from it.
My question is what does tip offset mean? Is there only a certain amount of money a server is allowed to make per hour or something? I live in NY
ascott87
 
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Joined: Tue Mar 22, 2011 6:21 am

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