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by alanfalcon 5128 days ago
I found this post from a cocktail waitress actually pretty informative on the subject of tipping:

http://cocktaildoll.com/tippingtips.htm

Specifically:

"Each casino and the IRS have an agreement as to how much to allocate each cocktail waitress, and whether to allocate her by the hour or per drink. The agreement is different with every casino, and within each casino, the allocation amount is different for each cocktail waitress depending on her shift and station. I will use the following as an example, and please keep in mind...this is just an example, a hypothetical, a not-for-real made-up FYI.

"Let's say I am allocated 25ยข per drink. If I bring out a hundred drinks that day, the IRS assumes I made $25.00, and that amount is added on to my paycheck as income. Whatever income bracket I fall into at the end of the year determines how much in taxes I will have to pay, or have paid. How does the IRS know how many drinks I take out? Because each time I get an order from the bartender, he swipes my ID badge, or enters my employee number, and he records whatever drinks I take out on the computer. By the way, whether it's a bottled water or a Long Island or a glass of champagne, they are each counted as one drink.

"If I am allocated by the hour, it works the same way, except now it doesn't matter if I take out one drink or a hundred in that hour, I will be allocated the same amount. (The bartender still records my drinks for the casino's records.) Obviously it would be to my advantage financially to take out more drinks. Let's say I get allocated $10.00 an hour and it's really slow, or I'm a lazy-ass and just stand around; if I serve just one drink that hour and I get stiffed, I'm still going to be taxed on $10.00 even though I haven't made it.

"Did I mention that the above is just an example, to be used for reference only? Please do not quote a quarter a drink or $10.00 an hour as fact or an absolute for all cocktail waitresses! I do not know how much each cocktail waitress is allocated, and it is also not my own personal allocation. It is just a clarification.

"Another thing: the IRS agreement is already in place with each casino, but each girl has the option of signing it or not. This is a very private matter, so while I don't know for a fact, I'm going to say that 99% of all cocktail waitresses do sign it. If a waitress does not sign the agreement, she is required to report her own tips."