Excluding tips from Social Security payroll taxes could lower tipped workers' future benefits

Hypothetical Monthly Earnings of a Server in Washington, D.C.

Table with 3 columns and 6 rows.
Total Income $4,330
 Wages $1,733
 Tips $2,597
Tips Included Tips Excluded
Social Security Payroll Taxes $268 $107
Earnings for Social Security Benefits Calculation $4,330 $1,733
Source: Bureau of Labor Statistics and Department of Labor
Note: Figures based on the mean hourly wage for waiters and waitresses in the Washington-Arlington-Alexandria metropolitan area and the minimum wage for tipped workers in the District of Columbia.