The answer is: ‘It depends’. There’s a lot of ‘depends’ when it comes to FDOR (in the law and worn by employees) – but let’s check it out:
Gratuity is NOT taxable when it’s separately stated on the bill AND 100% of the charge is distributed to the employee with no monetary benefit/gain by the employer. Basically, if the amount is labeled as gratuity on the bill and all of it is kept by the underpaid waiter then it’s not taxable.
If none of the above is met – then it’s taxable.