YOUNGSTOWN, Ohio (WKBN) – Ohio’s minimum wage went up Saturday. The wage increased to $9.30 for non-tipped employees and $4.65 for tipped employees.
The new wage for tipped workers far outpaces the federal minimum of $2.13 an hour.
Nick Freeman manages Club Switch in Youngstown. He says most tipped employees won’t see their paychecks increase.
“It pretty much covers the taxes you would owe at the end of the year. You might get some back. It’s not money that you depend on as part of your pay,” Freeman said. “This is probably the fourth time it has gone up for tipped employees over the past few years, and you don’t really see a difference in your checks,”
Most tipped employees don’t make any money from their paychecks at all. Tipped workers have to claim their cash and credit card tips at the end of each shift and are paid out in cash. Some servers and bartenders don’t make any money on their paycheck because of taxes.
“If you are doing really well in tips then your hourly wage doesn’t cover the taxes on that then you are going to owe money at the end of the year. A lot of times, it doesn’t work out that way, you get some of it back,” Freeman said.
Freeman says that the extra quarter an hour can help make sure tipped employees don’t owe Uncle Sam during tax season.