It’s not tax free, if they make sa minimum the govt assumes they make tips and taxes that whether they make tips or not. BSAnd I know a lot of people do that and a lot of wait staff do....but that bothers me even more because now, I paid the tax on the money that I'm giving you tax free....all because BigRestaur and FedGov got together on a deal to screw both me and the waitstaff over so that they could make more money.