What Are Tips Deemed Wages?

I am a waitress and on my paycheck stubs it lists my tipped wages (which I understand is what the house pays me), there are also reported tips (which my customers pay me), and then there's TIPS DEEMED...this latter one I have no clue if this is a deduction or allocated tips or even part of my income. Thanks for listening if you have an answer I definitely appreciate it.

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Tips Deemed
by: Best Business Payroll

"Tips Deemed" wages are the difference between wages the employer pays and the portion of the employee's tips which are applied to the minimum wage. In many states the employer is allowed to pay $2.13 an hour to tipped employees such as wait staff. If your state's minimum wage is, say, $7.75, $5.12 is applied per hour as "tips deemed" to make up the $7.75 minimum wage requirement.

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still confused
by: Anonymous

So does it mean it is counted as your income??? It makes no sence to me, I have my reported tips, my credit card tips, what my employer pays me for each hour I worked, and tips deemed wages this is not anything I made so how does it count as my income. Very lost on this

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calculatons
by: Anonymous

Wait staff has a lower minimum wage rate than standard employees. Your tips are used to 'fill in the gap'.
Your tips are taxable as income.
Your employer has to ensure your tips are enough to get you to that Federal minimum wage (7.75 I believe).
What TIPS DEEMED WAGES reflects is the amount of your tips that are used to calculate the gap between the two minimum wages.
here is the calcuation:
(your hours X Fed min wage) - (your hours X wait staff minimum wage) = TIPS DEEMED WAGES

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