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<p>[QUOTE=&quot;ldhair, post: 25466384, member: 11540&quot;]The places I go divide the tips on credit cards between the workers. They receive it on their paychecks as normal income. The business takes out State and Federal taxes, Social Security and health insurance on all income. It actually helps the workers from having to come up with a bunch of money when they file their tax returns. Many food service workers get way behind on taxes.</p><p><br /></p><p>Cash tips are almost an honesty thing. The worker should report the income but some don&#039;t. The business compare what each worker reports. They can tell when someone is not being honest and they have a talk with them. If what the worker reports is below the average it&#039;s also possible they are a really poor server. </p><p><br /></p><p>I pay cash and let the servers decide how honest they want to be.[/QUOTE]</p><p><br /></p>

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