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Note: The author is not really CPA or tax qualified. This article is for general information purposes, and might not be construed as tax points. Readers are strongly motivated to consult their tax professional regarding their personal tax situation.
The employer probably pays the waitress a very tiny wage, and allowed under many minimum wage laws because he has a job that typically generates ends. The IRS might therefore conisder that my tip is paid "for" the business. But I am under no compulsion to leave the waitress anything. The employer, on the other guitar hand, is obliged to pay for the services his workers render. Glad don't think the exception under Section 102 provides. If the tip is taxable income to the waitress, basically under the typical principle of Section sixty one.
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Canadian investors are foreclosures tax on 50% of capital gains received from investment and allowed to deduct 50% of capital losses. In U.S. the tax rate on eligible dividends and long term capital gains is 0% for those who are in the 10% and 15% income tax brackets in 2008, 2009, and transfer pricing the new year. Other will pay will be taxed at the taxpayer's ordinary income tax rate. Moment has come generally 20%.
The 'payroll' tax applies at a constant percentage of the working income - no brackets. The employee, you pay 6.2% of the working income for Social Security (only up to $106,800 income) and just 1.45% of it for Medicare (no limit). Together they take additional 7.65% of one's income. There is no tax threshold (or tax free) level of income to do this system.
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