<prompt> Human: I work in the beauty industry where we get paid minimum wage and also receive cash tips. The amount varies drastically day by day and I dont really keep track of it because I usually use it to buy breakfast and lunch. A 2 minimum wage increase just went into effect at work and my employer says that because of this, they are going to claim 20 in tips for every 10 hours worked. I work 40 hours a week at now 13 an hour and I cant figure out how this will change my take-home pay. Will this basically cancel out the raise or is it negligible? I guess I also dont understand what the benefit to the employer is, if I get taxed only a few dollars per 20. Since the 20 isnt really being added to my pay, is the tax just going to be taken out of my regular paycheck? I live in New York City if that helps. Thanks!  <response>: ...and also receive cash tips. The amount varies drastically day by day and I dont really keep track of it...Youve gotten some good advice on your question, but since no one has addressed this, I will. You need to be keeping track of your tips. They are taxable income to you, and you are required to report them on your tax return.Sorry if I sound like a dick, but please pay your taxes. 