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Nontaxed tip wages

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James Natsis

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Nontaxed tip wages

by James Natsis » Fri Jul 04, 2025 4:00 pm

Well, this issue warrants some commentary. I grew up in the restaurant industry as a son of a Greek immigrant restauranteur, and as a worker in various restaurants in St. Louis as an adolescent and a young man.

I lived off tips and support the concept philosophically and monetarily. I'm not against nontaxed tips, but I question giving the same tip amounts from my taxed income to those not paying taxes on those wages. I think tipping 15-20% for a sit down experience is reasonable already. And of course, every time one buys a coffee or many other items from even fast casual places with no real service, there is often someone literally staring at me when the screen displays tip amounts (that are starting at 20% more and more!).

I'm getting kind of burnt out on the customer carrying the load for the industry. I am much more tolerant of maw n paws and even local franchises, and have little problems with prices and tips to support these types of businesses that are essential to our local culture and economy . But we are being taken advantage of by large corporations that can skim back on their wages while counting on tips to carry the day. Its simply gone over board in recent years in my opinion.

I already know what my course of action will be. But I wonder how others feel about this.
James J. Natsis
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Robin Garr

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Re: Nontaxed tip wages

by Robin Garr » Sat Jul 05, 2025 3:41 am

Those are good thoughts, James. As a matter of principle I tip well, usually over 20%, because I know I can’t change the US tipping culture by punishing the working stiff. I also understand that the no-tax-on-tips rule is set up in such a way that it won’t benefit a lot of workers. It certainly isn’t enough to offset the losses of a worker who loses their Medicaid. The issue of large corporate employers and tip screens is non-traditional settings is complicated, though. In going to have to think about that.
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Jerry C

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Re: Nontaxed tip wages

by Jerry C » Sat Jul 05, 2025 9:41 am

The issue of large corporate employers and tip screens is non-traditional settings is complicated, though. In going to have to think about that.

I posted about this 6 months ago in another thread...I too was giving this some thought and began asking the counter person if they ever got any of the tip...the answer was "NO" no one has ever gotten a piece of that action." Just another money grab for the owner!

It certainly isn’t enough to offset the losses of a worker who loses their Medicaid.

Why would a worker lose their medicaid?

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