with the digital age of the credit/debit machines I"m sure these businesses can track tips a little bit better than leaving it up to the individuals to report in their taxes annually.
I get the cash is harder to track but why can't this be something built into the POS software. If they are getting cheques for their tips from the POS systems, why can't taxes be deducted and reported as income? Does the company get taxed on that? How does the employer deal with these tips in their books that they have to pay out?
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