abolishing tipping?

MMcC wrote:
Quite the contrary, a proprietor loves the tipping system, that way he
doesn't have to worry about paying his employees (outside of the USD2.25
wage), and leaves it soley up to the customer, nor does he have to worry
about all the taxes and paper work etc that he would have to deal with.

Why doesn't he have to worry about taxes and paperwork? He's still paying an
hourly wage.

miguel
--
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On Wed, 03 Dec 2003 16:02:35 GMT, (Miguel Cruz)
wrote:

MMcC wrote:
Quite the contrary, a proprietor loves the tipping system, that way he
doesn't have to worry about paying his employees (outside of the USD2.25
wage), and leaves it soley up to the customer, nor does he have to worry
about all the taxes and paper work etc that he would have to deal with.

Why doesn't he have to worry about taxes and paperwork? He's still paying an
hourly wage.

And, I believe, he must now presume a certain income from tips
for his employees and report to Internal Revenue accordingly.


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"Miguel Cruz" wrote in message
...
MMcC wrote:
Quite the contrary, a proprietor loves the tipping system, that way he
doesn't have to worry about paying his employees (outside of the USD2.25
wage), and leaves it soley up to the customer, nor does he have to worry
about all the taxes and paper work etc that he would have to deal with.

Why doesn't he have to worry about taxes and paperwork? He's still paying
an
hourly wage.

True, but the amount of money he has to withhold and send into the IRS is
much smaller. Talk to anyone who has run small business', making sure you
have the money put aside for the IRS (EFTPS stuff) can cause you some
headaches, i.e when cash flow is tight. Easier find that money when you're
paying your employees $2.50 as opposed to say $12 or $15 an hour, as the
amount will be quite a bit smaller. The larger the amount the more of a
headache.