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West Virginia Income Maintenance Manual Chapter 4

West Virginia Income Maintenance Manual Page 149 Chapter 4 Income

Example 8: A waitress, Mrs. Beech, applies on December 7. She is paid twice a month and provides pay stubs with the following information:

Mrs. Beech provides the following additional information: She earns $7.25 per hour. She does get some tips, but rarely the amount shown on her pay stubs. She says the employer determines the amount shown as tips by some formula that she does not understand because he is required by the Internal Revenue Service (IRS) to report them. She does not have to share her tips with any other employee, and they do not share tips with her. She says that during a “good” week she makes about $20 in tips. The employer never sees her tips; she does not report the amount to him and is not required to do so. The Worker pends the case for verification of the way the employer determines the amount of tips shown on her pay stubs and reported to the IRS. The client provides the following note from the employer:

There is no third-party independent verification available for the amount of Mrs. Beech’s tips. However, she does state that she receives tips, so income from the tips cannot be disregarded. The only way to verify the amount of tips is to accept her statement as to the amount. There is no other source of verification available, so the Worker must accept her statement. The Worker must record that the employer confirmed the tips shown on the pay stubs do not necessarily reflect Date Number of Hours Wages Tips September 15 20 hours $145.00 wages $40.00 tips September 30 25 hours $181.65 wages $52.00 tips October 15 17 hours $123.25 wages $35.00 tips October 30 20 hours $145.00 wages $42.00 tips November 15 7 hours $50.75 wages $7.00 tips November 30 25 hours $181.25 wages $60.00 tips To Whom It May Concern: Mrs. Beech works for me at the Dew Drop Inn as a waitress. I pay her $7.25 for every hour she works. She does make some in tips, but I don’t know how much. The IRS makes me figure her tips so I do it according to how much food she sells. I don’t think she really gets that much. None of my waitresses do, but the IRS makes me do it. Very truly yours, Lily Rose