Quote:
Originally Posted by ITD
Yet they have the maximum tax withheld from tips, at least this is done in Massachusetts as I said before. That's an unnecessary burden, were everyone who worked required to have 39% of their wages withheld regardless of income level there would be a revolution.
|
Based on IRS guidelines:
https://www.irs.gov/taxtopics/tc761.html it appears that tips should be taxed at the employees standard witholding rate, not at the 39% rate by default.