Starbucks Baristas: The daily grind
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Declaring tips? (self.starbucksbaristas)
submitted by abradds
I’m sure everyone is tired of reading posts about declaring tips by now, but honestly I was unaware of the process for months and months after I started working, and I actually do still have all my tips (don’t ask lmao), but I’m not sure exactly how to go about doing it when I’m 10 months late on declaring in the first place. Is it better to do it all at once (idk if that’s even valid?), or should I divide it up based on how many weeks I’ve worked and just do it manually and meticulously for each week?
lechatsombre 7 points 1y ago
You can just declare them when you do your taxes. I plan to do an average amount times the number over hours I work. Which is what Starbucks did for us originally.
cryingoverspiltmiIk 1 points 1y ago
If you do this you could end up owing significantly more on your taxes, because then you’ll be responsible for all of the social security, Medicare, and income taxes on your undeclared tips, in addition to a penalty equal to 50 percent of those social security/Medicare taxes. Plus, if your tipped income is significant, you could also face penalties and fees for an underpayment on your taxes. Definitely wouldn’t recommend this strategy unless you have a good reason for it.
Sources: $1; $1 (PDF)
Sources: $1; $1 (PDF)
cryingoverspiltmiIk 2 points 1y ago
If you’re going to report them, you should consider doing it by the end of the year so the company will pay its share of payroll taxes on it. You’ll also avoid potential IRS penalties and fees for nonreporting if you report the tips to Starbucks as opposed to waiting to declare them on your tax return.
However, it’s worth noting that your tax withholding will be higher for any pay period where you declare cash tips, and the more tips you declare the bigger your withholding will be. If you submit an entire year’s worth of tips in one week, for example (and if you don’t work many hours that week) it’s possible that your wages might not even cover the amount of taxes you owe for the pay period. In that case, you would either have to make a tax payment through your employer or ask them to withhold the remaining taxes from your next paycheck. Either way though, this might be a good reason to spread out when you declare your tips, or at least to declare them during a pay period where you’re working a decent amount of hours.
However, it’s worth noting that your tax withholding will be higher for any pay period where you declare cash tips, and the more tips you declare the bigger your withholding will be. If you submit an entire year’s worth of tips in one week, for example (and if you don’t work many hours that week) it’s possible that your wages might not even cover the amount of taxes you owe for the pay period. In that case, you would either have to make a tax payment through your employer or ask them to withhold the remaining taxes from your next paycheck. Either way though, this might be a good reason to spread out when you declare your tips, or at least to declare them during a pay period where you’re working a decent amount of hours.
mayor-em 1 points 1y ago
You can only input the last two weeks on my partner info, to go back further you have to call pcc. So, just like dont, and say you did?
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