100 dollar bill a 20 percent tip is $20 bucks. The restaurant holds back 3 percent, sometimes takes a cut if tip back of house employees, then takes SS, UI, Disability, state and local etc. then if kid in college income gets deducted off financial aid if student income to high. $20 in cash is $20 in cash. $20 on card could be $10-15 bucks. |
In many areas, restaurants have to eat credit card fees on tips. And the 3% fee would be 3% of the tip amount (so a 20% tip becomes a 19.40% tip), not 3% of the bill, anyway. Tip deductions for back-of-house employees are determined by the restaurant and would apply to both cash and credit card tips. In the US, all tips are taxable, regardless of payment method. |
This! Restaurants have to make up any difference in tips so that wait staff make at least minimum. My BIL owns a restaurant chain in NY state and they never have to make up the difference. His staff make a minimum of $22 an hour and usually much more. They budget 500k to “bridge the gap” but since it isn’t used, it goes back to the restaurant and he and the other owner take lavish vacations each year. People don’t know this is the law. You think a waiter will stick around making $4/hr completely dependent on tips? |
| Nothing for takeout!!!! Come on people. This is out of hand. |
Completely agree. Why am I tipping before I even know if the service/food was good?!?!? It doesn’t make sense! If you want people to pay extra up front, don’t call it a tip! |
Agree! The tip was "To insure proper (or prompt) service". Why am I tipping before I even know if the service/food was good?!?!? It doesn’t make sense! I am not here to pay their salary. I've had some horrible service and told the manager about it. I've even been comped meals for bad service and bad food. Why do I still have to tip if I've had a horrible dining experience! It's my money. I will pay where I see fit. |
OMG. You are such a horrible human being. These poor Waiters and Waitresses need your tips to earn a living wage. Do you know they earn $3 or $4 per hour? Do you know you should still tip even if the service was horrible? |
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they earn minimum wage. restaurants have to make up the difference between their hourly rate and what the minimum wage is. your tips subsidize an owners payroll.
my daughter was a hostess at a restaurant that catered to an elderly crowd. it was never busy and the waitstaff rarely made over minimum wage because they didnt get tipped often. but they did make minimum wage because the owners made up the difference. the restaurant has since gine out of business. |
| Didn't know that restaurant owners are supposed to make up minimum wages for staff now! I am going back to tips at 15% at dine in and absolutely DON'T have to feel guilty about it! and no tips for takeouts. |
NP here, but for a long time, I only ate out during business travel. My employer only reimbursed for 15%, and since I was living paycheck to paycheck, I literally could not afford to pay extra to increase the tip. You don't know everyone's situation. |
LOL. "To ENSURE proper service." You can't even make your stupid story believable. |
| Love this thread! |
+1. In your BIL's case, the customers are paying him $500K over and above what they pay for their food! Everytime there's a "survey" on whether or not restaurant peeps want the tipping method to continue, the "results" from the waitstaff and owners are generally in favor of tipping. What else do you expect? The waiters have no downside. The restaurant owner has no downside. They can raise prices anytime as long as it doesn't hurt the business. They don't have to pay a higher wage. win-win-lose (owner-waiter-customer) proposition. |
Why can you not express yourself in standard, grammatically correct English if you have lived here since you were a child? |
NP. It actually is much cheaper than NYC, where I live, especially if you factor in alcohol. Here a halfway decent glass of wine starts at $14 and goes straight up. In Spain, Greece, France, and Italy I can get an excellent glass for 4-5 euros. A little more in northern Europe, but still cheaper than in the US. |