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Reply to "So it’s 22% tips now"
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[quote=Anonymous][quote=Anonymous]Back in the 1980s folks gave 15 to 20 percent. 15 percent mediocre service up to 20 percent great service. But that was CASH. 20 percent today on credit card is not anywhere near what it was. It is minus Credit card fee Holding back portion bus boys and back of house Unemployment insurance Social security Medicare tax State tax Fed tax Plus if a student on financial aid or adult with subsidized Obama care it impacts their financial aid or health care premium. So the $100 tip of 1989 in cash vs. $100 tip on credit card in 2023 is a massive difference. And some restaurants if credit card fraud and charge reversed takes back the credit card tip. [/quote] There is less tax fraud with credit cards. Servers could easily underreport their wages with cash tips but that went out the window with the transition to CC. This does not mean that servers "make less". They are now paying taxes on all of their wages like the rest of us. [/quote]
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