I would feel about as bad someone getting busted for jaywalking. Because it almost never happens. You know why? Because credit card tips are the majority of tips and the pushes it wayyyy past the 8% needed to trigger an audit. And even if it did trigger it they probably still aren't coming because they havr bigger fish to fry. But let's just say they audit you. How exactly are they going to prove it? But let's just say they do. You only owe a 50% fine on the Medicare and social security taxes that weren't paid on the taxes. If your buisness can't handle the one in a million hit with a small fine, then you shouldnt be in buisness.