The High Cost of Violating Tip-Reporting Laws

Abstract

This article reflects the results of a survey of hospitality students who worked in tipped food-service positions during 1993. The great majority of students indicated that their employers did not instruct them to report all their tips as required by law and, consequently, they generally did not do so. Most tipped employees should be keeping a log of actual tips received. Employers who fail to insist their employees report all their tips could be found to be illegally lowering their contributions to FICA.