Starbucks Baristas: The daily grind
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New tip system confusion (self.starbucksbaristas)
submitted by [deleted]
[deleted]
Tall_Draw_521 15 points 2y ago
It used to be that Starbucks already withheld taxes based on a certain amount of tip they expect you’ll receive. They’d assume $.50 an hour and tax that. It would be in your paystub under taxable benefits or income and called “imputed tip income” if they’re still doing that.
You’re supposed to track how much you make in tips and if it’s over the imputed amount and over $20 a month, you report it. There’s a form.
But I don’t think a lot of people bother.
You’re supposed to track how much you make in tips and if it’s over the imputed amount and over $20 a month, you report it. There’s a form.
But I don’t think a lot of people bother.
localvillagewitch 7 points 2y ago
Yeah I remember seeing that on paystubs. I just haven’t ever been told that I need to fill out that form or to even report them, so it was alarming to see that on the update. And the more people I talk to at my store and nearby stores the more people are saying the same. It seems like something we should’ve been informed of.
rio8envy7 6 points 2y ago
It’s probably in the employee handbook and Starbucks assumes we read over it and know we should be doing it.
localvillagewitch 3 points 2y ago
Probably lmao. If it’s that important though they should emphasize with barista trainers that it should be explicitly mentioned to new baristas during training. There’s so much info in the handbook, they can’t just rely on us hopefully remembering that specific part.
rio8envy7 7 points 2y ago
I only argue it’s not the barista trainers job to tell trainees because there’s so much to learn and so little time for them to train. I believe when you’re hired you also sign off saying you’ve read and understand the rules in the handbook and will follow them. It’s the trainees responsibility to go through the book.
Tall_Draw_521 2 points 2y ago
And it’s not like you get time to go back and read it while you’re working. Unlike other jobs that have built in routine training and admin time....
Tall_Draw_521 4 points 2y ago
I mean look. The IRS is probably not going after baristas for the $3 in tax they would owe on cash tips. If it’s anything like when I was there I never earned more than $100 in tips a month. It’s chump change really.
But to be on the right side of the law, tips are reportable income and anything over the imputed amount on the paystub should be reported.
But to be on the right side of the law, tips are reportable income and anything over the imputed amount on the paystub should be reported.
medusas-garden 4 points 2y ago
I used to work in the restaurant industry and NOBODY accurately reported their tips and that was our main source of income lol I’m not too worried about the pocket change we get
Tall_Draw_521 1 points 2y ago
Exactly.
localvillagewitch 1 points 2y ago
I definitely agree, that’s why I’m kind of appalled that no one said anything, and especially that managers and DM in my area are also confused on the subject. I obviously want to make sure I do my taxes correctly so the IRS doesn’t come for me lol.
Tall_Draw_521 2 points 2y ago
Oh there’s tons of rules that no one tells you about in life that you have to follow anyway. You’re not alone
rio8envy7 3 points 2y ago
It’s still there it’s under fringe benefits which I was looking at last night and didn’t know what it was. I’ve never been told to tax my tips. My W2 go to an accountant my family uses so idk if I’ve been declaring or not. Cash tips most likely not. I’m actually ok with etips going into my paycheck.
Tall_Draw_521 1 points 2y ago
When I was there we didn’t have the app or e-tips. Do they show up on your paystub? Or do you just receive them in cash?
If they’re on your paystub you’re probably already being taxed/reporting it.
Edit yes I am old lol
If they’re on your paystub you’re probably already being taxed/reporting it.
Edit yes I am old lol
rio8envy7 2 points 2y ago
As of March 12 (I think) etips will start going into paychecks. There is a fringe benefits section on our paystubs that have imptips and .50 with I’m guessing an estimated amount you should have made in etips during that pay cycle as well as an estimated year to date total. So right now we get etips in cash. When I talked to my SM she told me digi tips are taxed before reporting so when they go for counting it’s already taxed. That’s why on the W2 there’s an estimated amount of tips made which I’m guessing is how much we should have made in etips. The amount in cash tips doesn’t get reported son it’s impossible for us to declare actual cash tips because we don’t know how much digi tips are. Only the person who does tips.
Tall_Draw_521 1 points 2y ago
They’re only partly taxed. The imputed tax section assumes a certain amount of tips based on the Horus you worked.
So for instance, if you work 20 hours one week, they tax $10 ($.50 per hour) and take it out of your pay.
Anything OVER that $10 has to be reported separately and as of March 12 will probably be taxed and show that way on your paystub. So it’ll be taxed and reported for you. I hope that’s the change.
So for instance, if you work 20 hours one week, they tax $10 ($.50 per hour) and take it out of your pay.
Anything OVER that $10 has to be reported separately and as of March 12 will probably be taxed and show that way on your paystub. So it’ll be taxed and reported for you. I hope that’s the change.
ea374616 5 points 2y ago
From what I understand about the tip update, only digital tips from mobile orders are being allocated to the checks--this being to save cash taken from drawers to satisfy it. I know our store has been low on bills.
The cash tips you receive in-store should still be given out as normal.
The cash tips you receive in-store should still be given out as normal.
localvillagewitch 2 points 2y ago
I get that. It just seems like more taxes to take from paychecks, and my store doesn’t average a ton of weekly tips as is. I haven’t had issues with cash, we actually get too much from change orders and have to modify.
xFreebutter 2 points 2y ago
So I might be wrong about this but if they're taking the .50/hr off of our paychecks and the money you receive from digital tips is less than that amount then you will actually be saving money on taxes.
[deleted] [OP] 1 points 2y ago
[deleted]
Flappadingo 4 points 2y ago
File this under things you need to know as an adult. all income is to be reported to the IRS. All of it.
Tips aren’t free money, they were just harder to track as cash. still always always always had to be reported. now it’s peanuts for individual baristas but as a whole Starbucks can be sanctioned for handing out that cash and not having it reported and taxes. so SB is covering their tracks.
this could be good bc now there is no at Hume to for not adding a tip line on cc sales. so maybe that will come about,
Tips aren’t free money, they were just harder to track as cash. still always always always had to be reported. now it’s peanuts for individual baristas but as a whole Starbucks can be sanctioned for handing out that cash and not having it reported and taxes. so SB is covering their tracks.
this could be good bc now there is no at Hume to for not adding a tip line on cc sales. so maybe that will come about,
localvillagewitch 3 points 2y ago
Well, it’s not like they teach us anything about taxes in school, so we wouldn’t know that unless taught by someone. The store managers weren’t even told that we had to declare tips, how were we supposed to know? A higher up should’ve informed us of that, like a long time ago.
Flappadingo -1 points 2y ago
What on Earth??. What store manager doesn’t know that.. outside hires? Licensed? What?
Anyone who has ever been a barista knows they get tips. Anyone who has ever had a job knows that all income is taxable.
Anyone who has ever been a barista knows they get tips. Anyone who has ever had a job knows that all income is taxable.
localvillagewitch 1 points 2y ago
That’s what I’m saying. Our managers are confused, they all talked about it in their weekly conference call because we brought it up. And like I said, no one has ever told us that we need to declare tips. I’m well aware we get tips and income is taxable, thank you. I’m specifically talking about the declaring them part, and trying to figure out if anyone else is having this issue.
Mommy2SNP 0 points 2y ago
You should have been declaring your tips over $.50 I get that your manager didn’t know and what not but then you should be declaring it as income come
Tax time and I’m sure that didn’t happen. This tip thing is very confusing but ultimately We will all
Figure it out and yea you will be getting taxed more because most starbucks make more than $.50 an hour, especially if your store is heavy on dig tips-
And if you didn’t get $.50 an hour in tips this whole thing is to your benefit
Tax time and I’m sure that didn’t happen. This tip thing is very confusing but ultimately We will all
Figure it out and yea you will be getting taxed more because most starbucks make more than $.50 an hour, especially if your store is heavy on dig tips-
And if you didn’t get $.50 an hour in tips this whole thing is to your benefit
Aliciarox11189 3 points 2y ago
We are supposed to declare if we make over $20 per month
Apparently this can be re-adjusted ? I have a photo if anyone needs reference
Apparently this can be re-adjusted ? I have a photo if anyone needs reference
heir_majesty 2 points 2y ago
I am in the Seattle area as well. In December ish if 2018 there was communication about declaring tips. My manager made a HUGE deal about it. The first week of January my partner info was updated so you can declare your tips on there at the store. Starbucks still taxes .50 an hour on your w2 so you are supposed to declare the difference. Example: you make $1.74 an hour in tips, starbucks already reports .50, you need to declare $1.24 an hour for the week.
papayaushuaia 2 points 2y ago
You get that much? Damn. We average 89 cents
Bubblebutt217 1 points 2y ago
When I worked at Dominos we had to declare our tips and our manager was like just put $1 that you’re declaring not like they can prove you earned more.
andrewcbrl 1 points 2y ago
The company has automatically declared your tips because they’re based on your hours and they already know what you made so if you check your paystub‘s it only shows what you got in tips.
Gameb0i6 1 points 2y ago
I’ve been a partner for 10 years. And never have I been told to report my tips. I assumed that Starbucks did it for me since they included it on my checks. But it’s never had any problem with in in the past when I did my taxes. So I don’t think it’ll be a problem now.
When doing my taxes in the
When doing my taxes in the
papayaushuaia 1 points 2y ago
I’m amazed at how many people think that income - any income- from any source is not taxed. Common guys. Uncle Sam takes a % of everything. Unless you are place of of worship.
As of March 1 - Every week you will receive a % of the previous week’s CASH tips. UNCLE SAM wants a cut and you will need to declare that amount on the partner hub. That’s it.
As of March 1 - Every week you will receive a % of the previous week’s CASH tips. UNCLE SAM wants a cut and you will need to declare that amount on the partner hub. That’s it.
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