One man’s tweet about tipping proved very costly for him. I’m Amy E. Feldman.
For some reason, the Executive Director of an Oregon nonprofit decided to tweet that he doesn’t tip in fast food restaurants because… who asked you? Maybe he was just trying to save employees the tax consequences?
As the end of the tax year approaches, many employees don’t realize that IRS regulations require tipped employees to report tips that total more than $20 a month to their employer, and they have to report non-cash tips like tickets or gifts to the IRS. So, the legal tip is to keep records of your tips and be prepared to pay taxes on them. As for the Oregon Executive Director, seems like a tax tip wasn’t what he was going for given that he also said employees who objected to his policy should get an education and a better job. Which is what he now needs, given he’s lost his. Here’s a tip: keep your nasty tweets to yourself.