Servers? Fluctuating Tips Make Financial Planning Difficult

Servers’ Fluctuating Tips Make Financial Planning Difficult











roadfish.com


Detroit, MI (PRWEB) May 24, 2012

RoadFish.com men’s lifestyle and finance magazine was shocked to read an article highlighting a waitress’s financial struggle with her less-than-minimum-wage earnings at the restaurant she works at in Detroit. The article pointed out that most servers are still being paid the same sub-minimum wage for tipped workers which has not increased since 1991, which in Michigan is $ 2.65 an hour but in many other states is still as little as $ 2.13 per hour.

Sharon Johnson of Forbes reported that Moldavian-born Zhanneta Dunder, a 41-year-old single mother, works full-time at a Detroit family-style restaurant and makes around $ 300 per week. That’s $ 15,600 in annual income, which would be in itself a challenge for one person to live on, let alone save up for things like retirement, pay off debt to increase one’s credit score, and put aside money into a savings account. Dunder states that she gives good attention to customers, and is proud of her service. But the time of day, mood of customers, and season of the year all play a role in causing tips to fluctuate and be incredibly unreliable from day to day, and week to week. Dunder is quoted as saying, “It is a struggle to pay the rent, let alone gasoline, car insurance and my daughter’s school supplies,” said the 41-year-old waitress. “But I’m grateful for the job because I like the people I work with and the customers are nice.”

Johnson’s article points out that there is a federal provision called “the tip credit,” which basically calls for lower wages for workers who receive tips at their place of business. Johnson reports that the sub-minimum wage for tipped workers is $ 2.15 an hour, which comes out to $ 4,333 yearly for full-time employees. The majority of states have instituted wages that are slightly higher than that—Michigan’s hourly wage for tipped workers is $ 2.65, for example—but about half of the U.S. states still pay tipped workers less than $ 3 per hour. As a comparison, the federal minimum wage is $ 7.25 per hour, or $ 15,000 a year for a full-time worker clocking 40 hours in a week. That’s more than a $ 10,000 difference.

RoadFish.com urged its readers to be generous, not stingy, when it comes to tipping. RoadFish.com’s Senior staff writer is quoted as saying, “Even if you don’t believe in karma, leaving a decent tip is just the right thing to do. You are paying somebody for a service they have provided you with. Now, in the rare occasion that the service is lousy, I have no problem mentioning something to a manager. But reading this story reminds me how much servers rely on tips, and stiffing your waiter or waitress might not feel like a big deal to you, but it is to them. Plus, leaving an inadequate tip is like telling a server that they didn’t do a good job. If they did do a good job, and you still leave a lousy tip, that’s confusing. They’re wondering what they did wrong? Or wondering if you’re just cheap?”

According to the United States Department of Labor, Alaska, California, Minnesota, Montana, Nevada, Oregon, and Washington are states whose law does not allow tip credit. Therefore, their hourly wages for servers are the same as for every other, non-tipped worker in the state, which in California for example is $ 8, and Alaska is $ 7.75. Among the states where the tip credit wages are the lowest is Indiana, Kansas, Kentucky, Nebraska, New Jersey, New York, North Carolina, South Dakota, Texas, Utah, Virginia, and Wyoming. All of these states have a set minimum cash wage of $ 2.13 an hour. Hawaii has the highest tip credit wage, coming in at $ 7.00 per hour. Connecticut and West Virginia are runners-up, with $ 5.69 per hour and $ 5.80 per hour, respectively. All of the other states have wages between $ 2.65 and $ 4.95 per hour.

RoadFish.com’s Senior staff writer is quoted as saying, “I remember when I used to work in the restaurant industry as a server, many times my paychecks would be a negative number, because the amount of taxes on the tips I was making exceeded my wages. If guests tipped in cash, I wouldn’t get any money added to my check, causing me to owe the restaurant at the end of the week. I didn’t mind, because it meant I was making good tips, but I worked in a fancy, upscale Italian restaurant. I got the job through a friend. I had many server friends who did not fare so well in the tips department, either because their restaurant was slow, or they didn’t serve alcohol or what have you, and it was just hell on their finances. It was hard work and long hours, and if it was a slow night and you only saw a couple of tables, you could make less than $ 30 bucks in a 7 hour shift—and that’s before taxes.”

Johnson’s article points out that servers usually do not enjoy benefits such as health insurance, paid vacation days, and sick days. A survey by Restaurant Opportunities Centers (ROH-United), a national nonprofit restaurant worker organization out of New York, stated that of the 4,300 restaurant employees in America surveyed, 90% did not have paid sick days, and another 90% do not receive health insurance through their restaurant employers. This lack of benefits and paid time off, in addition to the low minimum wage and fluctuating tips, can add to the financial stress of a serving position.

About RoadFish.com

RoadFish.com is an online men’s lifestyle and finance magazine targeted toward men in their 30′s and 40′s that have already attained a moderate level of success in life, and are striving toward more. It goes over current events of interest to this group, such things as exciting adventures, consumer interests, and hot chicks, as well as ways to make more and save more money. It is a publication owned by Purpose Inc.
























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Related Virginia State Tax Press Releases

Liberty Tax Covers Tax Tips for Homeowners

Liberty Tax Covers Tax Tips for Homeowners










Virginia Beach, VA (PRWEB) February 27, 2012

Homeownership is often the tipping point for a taxpayer to start itemizing deductions and deducting certain qualified expenses, rather than taking the standard deduction amount, according to Liberty Tax Service. Mortgage interest can be deducted for a primary home, a second mortgage, points, a home equity loan, or line of credit secured by the home. A boat or RV can be considered a first or second home if it has facilities for sleeping and cooking, and has a toilet.

“Mortgage insurance premiums are deductible as interest for filing a 2011 return,” added John Hewitt, Founder and CEO of Liberty Tax Service.

Liberty Tax examines some other tax measures for homeowners filing a 2011 tax return:

A Residential Energy Credit Continued in 2011

For eligible property placed in service during 2011, homeowners may be able to claim a credit of up to $ 500 of the cost of certain energy efficient property. The residential energy credit may offer a tax break on a 2011 return if all installation was completed in 2011. Residential energy credits apply only for main homes, and can include a new roof or exterior doors that meet the Energy Star requirements. The 2011 credit must be reduced by the amount of any residential energy credit taken after 2005, and can be claimed by filing Form 5695 Residential Energy Credit.

Tax Relief for Some Financially Distressed Homeowners Was Extended in 2011

Homeowners experiencing “short sales” and foreclosures will get a break for “debt-forgiveness” tax consequences. Instead of treating cancellation of debt as taxable income on the foreclosure of a principle home, no taxes will be levied on discharges of indebtedness of up to $ 2 million dollars for married taxpayers filing jointly and of up to $ 1 million dollars for a married taxpayer filing a separate return through tax year 2012.

Remaining Points May be Deductible in the Year of Home Sale

Starting in 2011, those selling a home who haven’t deducted all of their points may be able to deduct them in the year that they sell the home. A home seller who is a single taxpayer has the opportunity to owe no tax on the first $ 250,000 of profit for the sale of a home owned and lived in for two of the last five years. A married couple owes no taxes on the first $ 500,000 of profit for the same time period.

It’s Payback Time for Some Who Claimed First-Time Home Buyer Credit

Taxpayers who purchased their homes before January 1, 2009 and took the First-Time Home Buyer Credit are required to continue repaying the credit in 2011. The credit is recaptured over 15 years. The repayment is reported directly on Form 1040, U.S. Individual Income Tax Return. line 59b. If the home is sold or ceases to be the principal residence, the remaining credit is recaptured in the year of sale, and cannot exceed the gain on the disposition. Those repaying the credit as a result of discontinued use as their principal residence will need to file Form 5405, First-Time Homebuyer Credit and Repayment of the Credit with their 2011 tax return.

About Liberty Tax Service

Liberty Tax Service is the fastest growing retail tax preparation company in the industry’s history. Founded in 1997 by CEO John T. Hewitt, a pioneer in the tax industry, Liberty Tax Service (http://www.libertytax.com) has prepared over 9,000,000 individual income tax returns.

###





















Vocus©Copyright 1997-

, Vocus PRW Holdings, LLC.
Vocus, PRWeb, and Publicity Wire are trademarks or registered trademarks of Vocus, Inc. or Vocus PRW Holdings, LLC.







Virginia State Tax Laws – Some Basic Tips

If you have just moved to Virginia and are confused about filing tax returns in that state, here are some guidelines to help you.

To begin with, you should know that the rates for income tax in Virginia range from 2 to 5.75 percent and are classified into four income groups.

Married or single taxpayers who are filing tax returns individually pay income taxes at the rate of:

2 percent for an income of ,000
3 percent for an income of ,001-5,000
5 percent for an income of ,001-17,000
5.75 percent for an income of ,001 or more

Married couples who file income tax returns jointly have to pay taxes at the same rates but the income groups are doubled.

The due date for filing taxes in most U. S. states is April 15. The residents of Virginia are given a number of additional days to file tax returns and, usually, the due date is extended to May 1. You can get a lot of useful information regarding forms, due dates, instructions about filing taxes, and other tax-related information of significance at the official website of the state of Virginia: http://www.tax.virginia.gov/.

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The state levies sales tax and use tax at the rate of four percent. It could levy an additional one percent of local tax based on the purchases made. The above mentioned website gives ample information about sales tax too.

On July 1, 2005, the state decreased the taxes for food by nearly 2.5 percent and created a combined tax rate of 3.5 percent. The coming years promise reductions of 0.5 percent. The official website of the state of Virginia also gives the revised tax rates.

The use tax is a combination of the state’s retail sales and its use tax requirements. You have to pay these taxes if the total value of all sales-tax-free purchases you have made exceed 0. These items include those that were bought in a state devoid of sales tax and were later shipped to Virginia, sales tax free online purchases, and so on.

Virginia does not levy taxes on inheritance and estate at the state level. In this regard, it follows same estate tax laws as those followed at the federal level. It does not levy property tax either. Taxes are levied only at the local government level.

The official website of Virginia is the only place where you can get updated and authentic information about the state taxes. Here you can also obtain any other tax-related information that you might require.

Drug Information for Teens: Health Tips About the Physical and Mental Effects of Substance Abuse, Including Information About Alcohol, Tobacco, Marijuana, Prescription and Over-t (Teen Health Series)

Drug Information for Teens: Health Tips About the Physical and Mental Effects of Substance Abuse, Including Information About Alcohol, Tobacco, Marijuana, Prescription and Over-t (Teen Health Series)

This book provides students with facts about drug use, abuse, and addiction. It describes the physical and mental effects of alcohol, tobacco, marijuana, ecstasy, inhalants and many other drugs and chemicals that are often abused. It includes information about the process that leads from casual use to addiction and offers suggestions for resisting peer pressure and helping friends stay drug free.

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More Mental Health Information Products

Northern Virginia Replacement Windows Buyer’s Guide – Tips And Information For Vinyl Window And Door Summer Installation Around DC

As the dog-days of summer in the DC metro region fall upon us, Congress leaves this muggy, humid area for its summer recess, and air conditioners are working full tilt to keep up with the demand – it’s a great time to replace your windows. Notwithstanding quick-moving summer thunderstorms and hungry mosquitoes, this time of year is typically quite reasonable for installation of Northern Virginia replacement windows, doors and security screens from Vinyl-Lite Window Factory. The heavy spring rush on home contracting has subsided a bit, summer vacations are in full swing, and you’ll likely be able to set up the schedule you want for repairing and replacing your windows – just in time for Fall rental preparations and back-to-school activities. In fact, leaving window replacement to the professional while you’re on vacation, at the beach or camping, is a great option to consider – this way valuable air conditioning isn’t lost through the open windows and doors while your Northern Virginia window replacement or repair is underway.

During this very hot Northern Virginia summer and fall season, the average Washington DC and Northern Virginia area homeowner can realize very significant savings on energy bills by replacement of old, drafty, fogging and leaky windows with new, energy-efficient vinyl ones. The U.S. Department of Energy (DOE) estimates that the average mid-Atlantic household spends at least 40% of its energy costs on heating and cooling bills. Extreme savings (particularly helpful during these difficult economic times) from replacement of your Northern Virginia windows or doors can be had not only on the reduction in energy bills, but also at tax time next year – by receiving Federal residential energy efficiency tax credits and green building incentives for energy conservation home improvements.

On February 17, President Obama signed into law the American Recovery and Reinvestment Tax Act of 2009. This bill extends and modifies the tax credits for windows, doors, and skylights established in the Energy Policy Act of 2005. Qualifying products purchased between January 1, 2009 and December 31, 2010 are eligible for a tax credit equal to 30 percent of the product cost. Installation is not included; be sure to obtain an itemized invoice from your retailer or installer. The maximum amount of homeowner credit for all improvements combined is ,500 during 2009 and 2010.

Your replacement window products should carry the Department of Energy – Energy Star seal of approval. Think “Low E”, Argon Gas Fillers and Super Spacers. Look for a low U-factor and in Northern Virginia, a low Solar Heat Gain Coefficient (SHGC) rating is essential – 0.30 or less is the goal (and is required to take advantage of the energy conservation tax credits for home and window improvement). U-factor measures the rate at which a window, door or other home/patio opening conducts heat or cold flow. For windows, a U-factor may be reflected in the glass or glazing alone. However, National Fenestration Rating Council U-factor ratings represent the entire window or door performance, including the frame, glass, and spacer materials. The lower the U-factor, the more energy-efficient the door, window, patio enclosure or skylight. Old windows often have U-factors over 1.0. Energy-efficient vinyl replacement windows can reduce heating and cooling costs up to 15%, depending on climate, insulation and shading, sun angle, and so on. Energy Advantage Low-E Glass is a high performance, energy efficient window glass made with an invisible coating that blocks heat flow. It is sold directly by Vinyl-Lite Window Factory, and made by Libbey-Owens Ford, a company with more than a century of experience making glass for improved living.

Older homes, especially those found throughout older areas of Fairfax, Arlington and Prince William counties, usually contain lead paint. Painted window sashes tend to rub against painted frames, and therefore windows are the most common source of lead dust in the home. It has been well documented that even tiny amounts of lead dust can cause serious health issues. Professional lead remediation is available, but complete window replacement might be both a more affordable option and as stated earlier, a much more economical solution for your total home cooling, heating and tax bill. Rubbing and flexing of older windows also creates stress that leads to frame sagging and distortions, cracking and destruction of weatherstripping, caulking, and the various fittings that may be present for security measures. Altogether, older painted wood or aluminum windows do very likely cost you much more in “nickel and dime” direct or indirect repair and maintenance costs over the years, than do long-lasting, modern and energy efficient vinyl replacement windows.

Aluminum windows in particular are subject not only to paint peeling issues, but also fading, corrosion, air and sound leakage, and rapid breakdown of their seals and fitting components. Very frequently they become both difficult to open, and hard to close completely and lock. Especially during these hot Northern Virginia summer months, the direct sun can heat your existing windows to very high temperatures, melting the silicone seals – these seals re-congeal when the temperature drop overnight. As this is repeated each day and night over the long summer and into fall, the cycle results in drafty, fogging and ultimately very inefficient windows. Aluminum windows also conduct heat extremely well, resulting, in effect, your windows actually becoming mini-heating units as heat is conducted through the window and radiates into the house!

Vinyl Windows on the other hand, are terrible conductors of heat/cold. Vinyl doesn’t get nearly as hot during the day and the seals will stay intact throughout the hot spring, summer and fall months, even as Northern Virginia temperature swings really gear up towards the end of fall. Vinyl windows do not corrode like Aluminum, and they tend to flex and conform to the natural settling or temperature-induced expansion/contractions of area homes – without interfering in the smooth operation of opening, closing and locking.

Vinyl-Lite Window Factory in Northern Virginia and Washington DC, operating out of Prince William County, is Northern Virginia’s oldest and most successful vinyl replacement window and door service provider in the area. Vinyl-Lite has won numerous awards for business and community contribution and excellence. Vinyl-Lite offers superior, expert and factory-trained assistance in designing, choosing, installing and maintaining your Northern Virginia replacement windows. Additionally, Vinyl-Lite can help you navigate the energy-efficiency tax credits available for your home renovation project, whether it includes the core windows and doors, or also includes specialty garden windows, patio enclosures, screening solutions, vinyl siding or other custom window and glass replacement or repair projects.

Find More Virginia Tax Articles

Virginia State Tax Laws – Some Basic Tips

If you have just moved to Virginia and are confused about filing tax returns in that state, here are some guidelines to help you.

To begin with, you should know that the rates for income tax in Virginia range from 2 to 5.75 percent and are classified into four income groups.

Married or single taxpayers who are filing tax returns individually pay income taxes at the rate of:

2 percent for an income of ,000
3 percent for an income of ,001-5,000
5 percent for an income of ,001-17,000
5.75 percent for an income of ,001 or more

Married couples who file income tax returns jointly have to pay taxes at the same rates but the income groups are doubled.

The due date for filing taxes in most U. S. states is April 15. The residents of Virginia are given a number of additional days to file tax returns and, usually, the due date is extended to May 1. You can get a lot of useful information regarding forms, due dates, instructions about filing taxes, and other tax-related information of significance at the official website of the state of Virginia: http://www.tax.virginia.gov/.

The state levies sales tax and use tax at the rate of four percent. It could levy an additional one percent of local tax based on the purchases made. The above mentioned website gives ample information about sales tax too.

On July 1, 2005, the state decreased the taxes for food by nearly 2.5 percent and created a combined tax rate of 3.5 percent. The coming years promise reductions of 0.5 percent. The official website of the state of Virginia also gives the revised tax rates.

The use tax is a combination of the state’s retail sales and its use tax requirements. You have to pay these taxes if the total value of all sales-tax-free purchases you have made exceed 0. These items include those that were bought in a state devoid of sales tax and were later shipped to Virginia, sales tax free online purchases, and so on.

Virginia does not levy taxes on inheritance and estate at the state level. In this regard, it follows same estate tax laws as those followed at the federal level. It does not levy property tax either. Taxes are levied only at the local government level.

The official website of Virginia is the only place where you can get updated and authentic information about the state taxes. Here you can also obtain any other tax-related information that you might require.