I apologize on his behalf <| sep |> The tips are counted as earned income , not a gift , so any cash tips that are reported as well as all tips on credit cards have tax withheld from the employee ' s paycheck . If you make decent tips such that only a small portion of your income is on the actual paycheck , that ' s where the entire thing can go to taxes . When all of your income is on the paycheck , it would never have all income taken out for taxes . At most , 40 % would be withheld and that ' s for the highestincome earners , or on bonus checks , and it ' s usually more in the 2533 % range . Edit Typo <| sep |> I got my first pair of boots about a week after ordering , but wanted to do an exchange in late October . I got a second pair of the wrong boots somehow , which I ' ve now also returned , and apparently the order for my actual exchange never got put through . The actual order only got put in this Monday , so I ' m not going to get the boots until the second week of December . Little bit disappointed , but the weather ' s been fine so far .