Firmbutfair worker
New Member
- Jurisdiction
- California
Hi I just wanted to know when you're working as an independent contractor and there's tips included in your payments. Why is the breakdown of each job per tip not included? It leads to a doubt on how much actual tip was paid to IC vs amount actually given by customer.
This leads me to 3 issues:
1- The amount paid out to the IC is much less then amount provided by the customer.
Allowing the company to profit even from tips earned by the IC.
2- The amount of tips paid is not correct but actually inflated by the company in order to avoid paying any taxes on said amount. Which in turn places the tax burden on the IC when tax filing is due.
3 - when jobs are offered to an independent contractor the total amount paid may already include tips from the customer and companies use this to their advantage by simply deducting what day would originally have paid as a service fee to lower their cost in payouts. For example if something has you $5 as a standard service fee but customers include a $2 tip a conditional payment you won't be offered a $7 payment for the job to completed you would still be offered $5 because companies will deduct those $2 after service fee and substitute the $2 tip given by the customer without informing the IC.
Find this very troublesome and would like some advice on this issue since I'm sure it's a legal issue thank you for your time and help on this matter and I appreciate any guidance anyone can give me on this matter
This leads me to 3 issues:
1- The amount paid out to the IC is much less then amount provided by the customer.
Allowing the company to profit even from tips earned by the IC.
2- The amount of tips paid is not correct but actually inflated by the company in order to avoid paying any taxes on said amount. Which in turn places the tax burden on the IC when tax filing is due.
3 - when jobs are offered to an independent contractor the total amount paid may already include tips from the customer and companies use this to their advantage by simply deducting what day would originally have paid as a service fee to lower their cost in payouts. For example if something has you $5 as a standard service fee but customers include a $2 tip a conditional payment you won't be offered a $7 payment for the job to completed you would still be offered $5 because companies will deduct those $2 after service fee and substitute the $2 tip given by the customer without informing the IC.
Find this very troublesome and would like some advice on this issue since I'm sure it's a legal issue thank you for your time and help on this matter and I appreciate any guidance anyone can give me on this matter
