Server tips and paycheck
Servers often see almost-zero net pay from the cash wage line because tip taxes are taken out of the small hourly pay.
Common deductions
- Tip-out to bussers / runners
- Tip pool
Pay quirks
- Allocated tips on W-2 if reported below 8%
- Tip credit varies by state
Questions worth asking payroll
- Why is my paycheck almost zero?
- Did the tip credit calculation use the right minimum wage?
Official sources
- IRS Publication 15 (Circular E), Employer's Tax Guide — IRS · 2025 · last verified 2025-04-01
- U.S. DOL — Overtime Pay (FLSA) — DOL · last verified 2025-04-01
- U.S. DOL — Fact Sheet #17A: Exemption for Executive, Administrative, Professional employees — DOL · last verified 2025-04-01
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