I just started managing a bar, and the agreement was for a $30,000 salary with the chance to bartend six days a week. The deal is I meet 40 hours weekly for the salary to kick in, but if I don’t, my pay is converted to hourly. My last check was $1,790, and I earned about $1,000 in credit card tips. Since I met the 40-hour requirement, the salary should’ve applied, but I feel like the numbers don’t add up.
The owner said he combines my salary and tips, subtracts taxes from both, and then writes me a check. He claimed this method helps me get a refund at the end of the year. Is this normal? Does this seem right?
For context, I’m married, have two dependents, and live in Alabama.
Did you fill out your W-4 as married with two dependents? If so, the take-home pay seems about right for $1,000 in tips and $1,153 in salary. That adds up to $2,153 gross, and $1,790 net sounds reasonable after taxes.
It’s correct to withhold taxes from both salary and tips. A $30k salary means about $1,153 every two weeks, so adding $1,000 in tips gives you $2,153 gross. A net of $1,790 sounds right depending on your state taxes. Still, you should ask for a pay stub to confirm everything.
@Noor
The numbers seem accurate. Probably around $165 for FICA and $200 for state and federal taxes.
He legally has to give you a pay stub with all deductions listed. Not knowing how your pay is calculated is stressful and unnecessary.
Alabama allows lower minimum wages for tipped workers. If you drop below 40 hours, do you have a set hourly rate, or does it go to minimum wage plus tips? This could cause your paycheck to drop significantly.
Dru said:
Paying you hourly until 40 hours and then switching to salary is not legal. Even if you agreed to it, you can’t sign away your rights as an employee.
He said he does this so managers can earn more, but based on this thread, it seems like it’s more about benefiting himself.