What percentage of tips go unreported?
What percentage of tips go unreported? The standard minimum tip rate of 8% is in practice adjusted by the IRS in accordance with local demographics and statistics. Tip income has been scrutinized more than ever during the past five years. The IRS estimates that 84% of tip income, approximately $500 million each year, is never reported.
Do attractive waiters get tipped more?
I find that attractive servers earn approximately $1261 more per year in tips than unattractive servers, a result that is both statistically and economically significant. The main driver of this beauty earnings gap appears to be female customers tipping attractive female servers more than unattractive female servers.
What happens if you forget to declare tips?
If you fail to report your tips to your employer, the IRS can impose a penalty equal to 50% of the Social Security and Medicare tax you fail to pay.