Local News


Resorts World 'system error' leaves tipped employees with temporarily smaller paychecks

Posted at 11:24 PM, Oct 07, 2021
and last updated 2021-10-08 02:58:04-04

LAS VEGAS (KTNV) — Resorts World announced that its tipped employees will receive lower paychecks after the company made an error in withholding taxes.

A statement was sent to tipped employees, and then shared on Twitter by the account @LasVegasLocally, telling them that taxes were not being taken out of their tips since the grand opening over the summer.

Now, back taxes are owed to the Internal Revenue Service.

13 Action News got ahold of several employees in positions impacted but none of them felt comfortable going on camera because they were fearful of losing their jobs.

Every employee 13 Action News spoke with was infuriated by the oversight. Employees reported losing anywhere from $40 to $95 a paycheck and say they were required to sign paperwork agreeing to the deductions.

Resorts World commented on the issue saying:

“Resorts World Las Vegas has taken steps to remedy an inadvertent system error that resulted in the under withholding of taxes on tips received by some of our Team Members. The amounts that should have been deducted will be withheld over the remaining pay periods in 2021. While we have fixed the error, we recognize and apologize for the inconvenience this has caused our Team Members, and will continue to work with them as needed to ensure this is made right for them with the Internal Revenue Service.”

It is unclear how many employees are affected.

The tipped positions will see hits to their next six paychecks, bringing them to the end of the year.