How should servers handle cash tips according to restaurant policies?

Servers should keep track of their cash tips and report them according to restaurant policies and tax regulations. This approach ensures compliance with legal obligations surrounding income reporting. In many jurisdictions, all income, including tips, must be reported for tax purposes. This practice protects the server from potential penalties related to tax evasion and upholds the integrity of the establishment.

Proper reporting also allows the restaurant to manage payroll taxes more effectively and maintain transparent financial records. It's important for servers to understand the significance of following these guidelines to foster a professional environment and promote fairness among employees. Options that suggest otherwise not only undermine the integrity of the financial process but also pose legal risks for both the employee and the restaurant.