What Is Always True About a Food Service Employee's Tips

question 17

Multiple Choice

What is always true about a food service employee's tips?

• A) They are taxable income.
• B) They are nontaxable income.
• C) They are controlled by managers.
• D) They cannot include any mandatory tip pooling arrangements.

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Definitions:

Valid Gift

A gift that meets all legal requirements to be considered legally effective, typically involving a clear intention to give, acceptance by the recipient, and delivery of the gift.

Delivery

The process of transferring goods from one party to another, completing the sale or fulfilling a term in a contract.

Acceptance

is the agreement to the terms of an offer, contract, or proposal, thus forming a binding contract between the parties.

Insurable Interest

A requirement that a person stands to suffer a financial loss or certain types of losses from the damage, loss, or destruction of the subject matter of the insurance policy.