<prompt> Human: My paycheck of 507 was taxed down to 260 because my employer taxed my cash tips out of it. Is this legal without a 1099 or do they have a right to tax my hours worked and that wage to pay for taxes of my tips?Louisiana laws to clarify  <response>: Cash tip is taxable income. Cash tip earned while working as an employee is W-2 income, and is subject to the same tax withholding. Its a part of your wage. 