After so many years of receiving cash tips.... now we have to report them in store??? WHY? Those anyone have a problem with this? ... I’m in Florida and I’m not sure if all US partners are being told they must declare their tips in the MPI?
Ristrettooo11 points2y ago
Tips have always been taxable and the IRS has always required you to report tips to your employer. Previously you had $.50 per hour imputed as tip income and you were required to report tips over that amount, although most partners were probably not doing it. It's not really Starbucks deciding to tax tips that weren't taxed before so much as them trying to comply better with existing federal law.
Tall_Draw_5218 points2y ago
Thank you. I’ve explained this four times on here and was not looking forward to doing it again.
Immediate-Law-30007 points2y ago
I don’t really care if they were always taxable or if they want me to report them or not. If Trump can get away with paying $750 in taxes as a billionaire I guess I can just keep all my tip money, k?
Mommy2SNP5 points2y ago
Starbucks is no longer taxing them for us re-read the past few weekly notes it should give you a good explanation
Tall_Draw_5214 points2y ago
They never were actually. The imputed tip amount was almost always either way more or way less than most people we’re making and no one was reporting the excess as required by law.
Mommy2SNP3 points2y ago
Right everyone got taxed $.50 so yes they were taxed- but either less than what you brought home or more than like in our stores case we usually only brought home $.40 an hour
Tall_Draw_5210 points2y ago
No......they were taxing $.50 per hour. That may or may not have been what you were actually making in tips. It’s called imputing.
For instance: If you worked 10 hours in a pay period then $5 was taxed as income. If you brought back less than was imputed, you could file an amended return.
Mommy2SNP2 points2y ago
Wow 😐 I meant $.50 per hour like it said our store made $.40 an hour why did you repeat what I said was there value to it that I’m missing
Fun-Ad-3757 [OP]2 points2y ago
Thanks everyone!!!!
colonade172 points2y ago
Some states don't have income tax so there's no extra taken out there for states like FL and TX, but there's still federal income tax on your cash tips. (starbucks imputed 50cents/hour but you were still supposed to update it if different) Now instead of just updating when you file your taxes starbucks is trying to make it easy and spread out the tax by reporting it every week.
The big difference here is that most partners never bothered to report their tips before.
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