Reply to After July 1, 10% tipping should now be the norm in DC

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Reply to "After July 1, 10% tipping should now be the norm in DC"

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[quote=Anonymous][quote=Anonymous]Unless you are tipping in cash 20 percent is peanuts compared to the past.

For example when I went to college a lot of the girls busted their butt at a fancy restaurant near school as waitresses. They were fancy clothes, hair done, make up, spotless and restaurant checked. A few guts were waiters in tuxedos also showered, shaved and clothes immaculate. They got there early for shifts, stayed till last customer done.

But neck then all tips were 20 percent CASH. 100 dollar bill you skip waitress $20 cash.

Today people put tip on credit card. Most restaurants take the credit card processing fee out of tip, then there is SS, Medicare, UI, disability insurance, Fed and state taxes. Some also splits the tip bartenders, buss boys etc.

The waitress is taking a 50 percent haircut in tip. Plus the restaurant does not pay till paycheck and if restaurant goes under well poof money gone.

It is not as profitable to waitress as it was back 40 years ago. First people are cheaper and tips are not cash.

My father worked a job with tips. His better customers tipped 20 percent on card then also gave cash. For instance he drove a guy from DC to NYC in a blizzard in his limo as guy has big meeting and airport shut. Of course guy tipped 20 percent in corporate card but also tipped 20 percent cash. My dad got stuck in NYC a few so parked car, got hot lunch then headed out. The stupid tip on card does not give him cash to spend. His company only paid once a month and payroll taxes. [/quote]

You do realize that at most restaurants, even if a server is being tipped cash, the restaurant will estimate their tips based off their total sales for a shift. They will then report those tips to the IRS. Any taxes will be taken out of whatever is on their paycheck, which is often just the hourly wage. Most servers end up owing a lot of taxes at the end of the year because of this system. It's much better to have at least a portion of the tips paid through the paycheck so more taxes can be taken out.

Also, some restaurants will still pay the server cash for all of their tips at the end of the night, even the credit card tips. [/quote]

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