$2.13 Is the Tipping Point -- America's Food Servers Are Grossly Underpaid

[Ms. Toad]

36. Yup.

Best bet for enforcement is a complaint by a recently no-longer-employed person (or more than one) to the labor department. Because you know any current employee won't be an employee long.

Same dilemma faced by employees who are being paid as independent contractors when they face their first tax hit. I could have them use the tip form to report their income and save 7+% in SE taxes, but that was an immediate flag to the IRS to go collect the other half from the employer. (And filling out the SS8 to request a formal determination had the same result without the benefit of saving the taxes in the first place). Not the best move for making an employer happy - but in some instances it was the only option when the unexpected tax bill was higher than they could pay.