It’s not Starbucks trying to tax it. It’s just the law and they have no choice. It’s income you’re getting so you have to pay taxes on it like anything else. Otherwise it’s called tax evasion.

Log in to My Partner Info from a store computer. Click on “Declared Cash Tips” on the left side. Enter the amount you receive weekly.

Just log in to My Partner Info from a store computer. The same site where you update your address, your W-4, etc. Click “Declared Cash Tips” on the left side. Enter the amount weekly.

I think they just started doing it within the year, which is partly why so many people don’t know about it, I never do it because I always forget

Keep doing it. It’s amazing how many people on this sub will commit willful tax evasion over such small amounts of money. Is it worth even the tiniest chance of having problems with the IRS? Nope.

If you forget to enter it a few times, you can call PCC and they can fix it for you for dates more than two weeks ago.

It’s much better to just declare them. If you declare, Starbucks pays their portion of the FICA taxes on them (50%) and it gets included on your W2 automatically.

If you declare them on your taxes later using IRS Form 4137 for unreported tips, you might be hit with a 50% penalty on the amount of tax unless you attach a statement explaining why it was not a willful action on your part. Then if you did it one year, you wouldn’t be able to use the same excuse next year.

Directly from the Form 4137 instructions:

> If you didn’t report tips to your employer as required, you may be charged a penalty equal to 50% of the social security, Medicare, and Additional Medicare Taxes due on those tips. You can avoid this penalty if you can show (in a statement attached to your return) that your failure to report tips to your employer was due to reasonable cause and not due to willful neglect.

That’s bull I’m sorry

You always had to declare yourself. The difference is that Starbucks used to add 0.50 per hour tips automatically for you to make it less of a burden. If you received more than that (or less), you always had to declare and correct it.

Now they switched to adding digital tips automatically. Cash tips still need to be declared.

Honestly how would they know?

If you declare the tips, the additional tax on the tips is automatically taken out of your paycheck - so you don’t have to set up additional withholding just to account for it.

It’s not the SM, ASM, or trainer that determines anything. The IRS makes the rules, and the tips have to be reported.

https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting

It takes like 3 minutes to do once per week. Do it at the end of your shift before you punch out.

If you do it that way Starbucks won’t pay 50% towards that amount (like they’re supposed to) and you’ll end up paying more in taxes. Ultimately that’s what they want you to do so that they don’t have to pay more taxes.

😃

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