Not my area of expertise at all, but whenever I hear about taxes and tips, I think of the summer I spent as a payroll clerk in Yellowstone National Park.
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Part of the job was getting the staff to sign their timecards (including tip reporting) at the end of each pay period. One experienced waiter always figured the exact amount of tip reporting so that his wages exactly covered taxes and employer-provided food and housing.
Not my area of expertise at all, but that experience makes me wonder about tip under-reporting. There's probably less under-reporting now that we've moved away from cash tips to credit-card based tips. But I still wonder what fraction of tips are ever reported as income to tax authorities.
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