Are Tips Included in Casino Workers' Pay During the Furlough?

Unemployment compensation is going to be very important for casino workers who are furloughed during the COVID-19 pandemic. The amount they receive will be calculated using wage information provided by their employers. How do casinos calculate the wages of employees who normally receive tips as a large portion of their income? Do casinos report the hourly rate plus an expected average compensation from tips, or do they only report the hourly wage?

Deanna Pettit-Irestone, executive director for public relations at Wynn Resorts, says, “It is the hourly rate plus for tipped employees. It includes the average tip-compliance rate or distributed tips/tokes since the beginning of the year.”

Adds Rosa Mendez, public information officer for the Nevada Department of Employment, Training & Rehabilitation, “Tips are a part of covered wages, which employers are required to report, and if reported as required, will be included in employee's [unemployment insurance] benefit calculations.”

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rokgpsman Apr-11-2020

Employee tips

I wonder if some employees will get less unemployment because they tend to under-report their tips? My sister was a restaurant server/waitress and she said everyone she worked with didn't report all the tips they received. They treat it as cash earnings they don't have to pay taxes on or share. My guess is this happens with people working as bartenders, housekeeping, bell staff, valet workers, shoeshine stands, coffee stands, cab drivers and many others.

Don the Dentist Apr-11-2020

Tip repoeting

The IRS has developed a system of "estimating" the average tip per type of employee per shift. This is included in their taxable income. 
Notice the answer from Wynn "the average tip-compliance rate". And the answer from NV employment "Tips are a part of covered wages, which employers are required to report."

sarahcuda Apr-11-2020

tips

Slot attendant here- my tips are put into a locked bag, which are counted by vault attendant at the end of my shift. I'm taxed on the tips. If we pocket a tip, we get fired. The casino knows exactly how much we make, and how much to report to EDD.

Beechuk Apr-11-2020

Casino response

Did the Advisor call anyone other than Wynn?  Sure, the Wynn is paying their employees (and I'm thinking about the dealers) the "average tip-compliance rate or distributed tips/tokes since the beginning of the year".  But not being a Wynn patron, I'm concerned that the dealers I know at Caesar's locations (and other casinos) aren't getting by.  Tell me this isn't so!  Considering that their salary - such as it is - is only minimum wage, I'd like to believe that they're getting more than that.

Question of the Day - 11 April 2020

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