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You will not get into trouble with the IRS, so long as you are claiming what you are actually receiving in tips. What you are receiving is what your employer is distributing to you, not what is left for you on the table.
According to the IRS there are two different ways to track your tip income. You can keep a diary where you note your tips daily
or you can keep copies of receipts and charge slips showing the gratuity paid. However, for your purposes the diary would be the route to go because what is distributed to you is different than what's on the charge slips
Can our employer get in trouble by pocketing 10% of out tips and not claiming it to the IRS?
Well, if he's not claiming the 10% as income to the iRS he can get into trouble
Can we sue him for taking our tips?
No, if that is his restaurant those are his customers. He could technically take 100% of the tips, so long as he paid you minimum wage.
According to the Colorado labor dept, tips are the sole properties of tipped employees. Employers have no right on their employees tips.
I'm sorry, but I'm a tax professional and not an attorney so I would not be familiar with Colorado law.
I understand. Thank you Megan, you have been very helpful.
I can answer your question as to whether or not you can get into trouble with the IRS
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