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Beauty and Fashion
Reply to "Tipping for expensive salon visits"
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[quote=Anonymous][quote=Anonymous][quote=Anonymous]To add -- my salon requires tips be in cash, so I also see this as pretty likely tax fraud. She probably makes 60K a year in cash that it basically under the table. It's just a way for the salons to shift money away from the Social Security Administration and the general tax revenue. [/quote] That’s not your problem, and she’s more likely to get audited. They will imply tips. [/quote] Agree it's not my problem, but it's sort of all of our problems when certain industries do this specifically to keep their employer-side taxes low and to cheat the social security system. I've always wondering how the IRS implies the tips. I suspect my stylist probably reports just enough in tips to avoid suspicion (basically whatever she's putting into her savings account), and pockets the rest. Also, the IRS does basically no individual audits anymore.[/quote]
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