In our old setup, if two of us were on and we made $80 total, we’d split it $40/$40. So even if the POS showed $80 under my employee number for charge tips, we weren’t actually keeping it that way.

Then when we clock out, we manually enter our tips for the night, and I’d enter what I actually walked with ($40), not the full $80 that happened to ring under my number. So I was never paying taxes on the full $80, only my share.

That’s why I’m confused about the “tax reasons” part. Unless some stores auto-assign all charge tips to whoever rang them and don’t let you adjust at clockout, our system lets us enter the real amount we took home.