flavious27
Well-Known Member
The reason tips are calculated based on the amount of sales is because that is how taxes are calculated often times by the IRS. It is not based solely on tips reported because the IRS is not ignorant to servers withholding reported tips. This ensures that they pay adequate taxes.
The most interesting conversations I had with loan applicants were the wait staff that could understand why we went by their reported income and not what they made and did not report. I had a waitress that was applying for a 12,000 auto loan but was only reporting $400 in monthly income even though she told us she would pull in anywhere from 2k - 3k.