Definitely belongs here yes?

You said, "The government doesn't force them to pay minimum wage". My explanation is to describe how the government DOES force them to pay minimum wage.

For accounting purposes, my tip is a subsidy for the owner. If minimum wage is $10, then the server will make at least that amount. The $10 WILL COME FROM THE OWNER (because the government forces them to pay minimum wage). But if I tip $5, then I'm subsidizing the $10 that the government is forcing the restaurant to pay. I'm "donating" money to the restaurant to help them meet the minimum wage.

What is NOT happening is Circumventing the owner by directly paying the server. Here's why: The server and I conduct our business on the property of the restaurant owner, with the tacit permission from the owner, so the interaction is still THROUGH the owner. I am not directly employing/contracting the server, which is why the customer doesn't need to file w2 forms, w9 forms, or 1099 tax forms. When you put tip on your card, the payment is processed through the owner's card terminal and account. You are not sending Venmo or Cashapp to the server. (I'm aware of the fact that if you pay cash, the server could illegally evade taxes and just pocket it and not report it). So for all these reasons, when you tip, you are very much paying the restaurant, not the server.

But whether you subsidize the wages or not, the government does indeed force the owner to pay minimum wage.

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