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The restaurant group we worked for kept track of our tips, but didn't withhold taxes for front-of-house staff, he warned — we were expected to do that ourselves. At the end of each shift, servers would bring their paperwork to the bar to be tipped out from the register, and leave the restaurant with every dollar they'd earned that night.
It was tough to avoid spending the money once it was in your pocket, Todd acknowledged, but the trick was to treat that money likeinstead of net income. Or else I could find myself in dire straits come tax season. He told me plainly that I could probably expect to owe between $5,000 and $10,000 every year, and that if I didn't have that amount on hand , I should be setting aside 20% of my tips every single night in preparation.
To drive the point home, he pointed out another server who was so behind on her taxes from years prior that she literally couldn't afford to work anywhere else. Periodically, she'd come to work complaining that the federal government had
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