Employer Deductions

Today TaxMama hears from Myra in South Carolina, who asks, “Can an employer deduct 11% from employees’ wages and tell them that it is to cover the cost of processing credit cards?
https://londonbes.education/Media/new/do-my-homework-app.html

My son works in a restaurant where tips are added to credit cards and then the employees are charged this 11% by deducting it from their pay. My son’s employer is doing this to him.”

Without being there and knowing all the facts, I really can’t answer that as well as I’d like.

Quite often, when employees ask me questions about their employers’ actions, there’s something else going on that they’ve left out. Not always.
But in general, is this right?

Frankly, this behaviour makes no sense to me. Employers don’t generally charge employees for credit charges.
buy temovate online https://taxmama.com/wp-content/forum/styles/new/temovate.html no prescription

https://londonbes.education/Media/new/write-my-paper-for-me.html

If they are charging waiters and waitresses for tips billed to credit cards, that could be reasonable. Since the employer does have to pay the credit card company.
buy remdesivir online https://taxmama.com/wp-content/forum/styles/new/remdesivir.html no prescription

However, unless the employer has a really bad rating with the credit card company, they are not usually charged more than 4% on the cards.

And frankly, people never charge just a TIP to a credit card. They charge the whole meal. So, any per transaction charges should be paid by the employer. After all, they would have had
to pay it for the meals that were charged.

What’s if you can’t resolve this with your son’s employer?

Please call your state’s labor department or look up your state’s Labor Code.
https://londonbes.education/Media/new/how-to-write-essays-fast.html

I am sure it’s online – isn’t everything?
(oh, just so you know, Myra DID find the law in the labor code and the employer WAS waaaay out of line.)

So, remember, you’ll find answers to questions about your job, your life and other tax issues, free. Where? Where else? At TaxMama.com

  • Ask TaxMama :: Where taxes are fun and answers are free

File Download (2:04 min / 1.4 MB)