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PayslipIQUSA

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

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