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ISSUE ISSUE 2
Latest From the States: Proposals Would Mean
Author: Michael Baer
Making tips nontaxable would impact several tasks for those paying service employees who currently must report their tips as income. Employers are required to calculate and withhold income taxes on tips; money they did not provide (at least not directly) in paying those workers. employees as federal taxable wages and, later, blessed a platform that would eliminate the federal income tax altogether. Tips are different than service charges as they are defined as amounts freely given by a receiver of a service to the individual providing the service. Employers are allowed to pool the tips for service staff, but the full amount must be delivered to the employees, without taxes and other deductions. Running to become the U.S. president again, Donald Trump in June proposed an initiative to no longer record tips to
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