Tipping Culture Where You Live

mcgruff10

Got a bottle of wine yesterday for dinner and there was a tip cup for the cashier.  Like, what?! 

lastexitlondon

I only ask because if tax free and a cash perk I get that. If tax is coming off a tip and the price is set already low because a tip is assumed? Or the price is high enough and the tip makes it higher 

mace1229

lastexitlondon said:

I only ask because if tax free and a cash perk I get that. If tax is coming off a tip and the price is set already low because a tip is assumed? Or the price is high enough and the tip makes it higher 

You are supposed to claim tips. But do you really think that a server or bartender who makes $300 cash a shift is going to accurately claim all of that on their returns? My friends in college who were servers certainly didn't, and they got mostly cash tips back then.

Now, restaurants that have you enter all tips into a pool and split with the kitchen staff, or tips charged on a credit card, I'm not sure how that works. There might be a paper trail (W2) that keeps track of it and makes reporting it unavoidable, I have no idea on that.

mace1229

PJ_Soul said:

HughFreakingDillon said:

F Me In The Brain said:

Also, I know everyone is different but I'm very surprised to see how many people here feel pressured by the option to tip.  As a few have pointed out, just bypass and don't tip or put Other and tip what you like.  Wonder why this makes people uptight, anxious, or in some way to feel badly.
I don't give a fuck one way or the other.  If I want to tip, I do.  If I don't, I don't.  

I don't think this option is going away so I hope that folks can get comfortable with saying no if that is what they want, and not feeling like they need to take out their feelings on folks who depend on tips in more traditional settings due to the new tech options in untraditional tipping settings.

the passive aggressiveness of the "would you like any change?", even when I give two fifties on a $60 bill. lol. um, YEAH

That's the rude way to say it, and servers should know better. I was a server for years all through post-secondary, and the polite way is to just say, "I'll be right back with your change." Then have that opportunity to say, "no, that's okay, no change!" if they want to give it to you as a tip, but they aren't being asked for a tip at all.

The worst is when they don't even ask and don't bring back the change at all. Has only happened a few times, and its when the bill was maybe $30 and I give them $40. Wait around for my change that never comes until I finally have to ask for it. 

Gern Blansten

mace1229 said:

lastexitlondon said:

I only ask because if tax free and a cash perk I get that. If tax is coming off a tip and the price is set already low because a tip is assumed? Or the price is high enough and the tip makes it higher 

You are supposed to claim tips. But do you really think that a server or bartender who makes $300 cash a shift is going to accurately claim all of that on their returns? My friends in college who were servers certainly didn't, and they got mostly cash tips back then.

Now, restaurants that have you enter all tips into a pool and split with the kitchen staff, or tips charged on a credit card, I'm not sure how that works. There might be a paper trail (W2) that keeps track of it and makes reporting it unavoidable, I have no idea on that.

Restaurants are required to police the tips. I'm sure some slip by but it's on the employer to have them reported.

mace1229

Gern Blansten said:

mace1229 said:

lastexitlondon said:

I only ask because if tax free and a cash perk I get that. If tax is coming off a tip and the price is set already low because a tip is assumed? Or the price is high enough and the tip makes it higher 

You are supposed to claim tips. But do you really think that a server or bartender who makes $300 cash a shift is going to accurately claim all of that on their returns? My friends in college who were servers certainly didn't, and they got mostly cash tips back then.

Now, restaurants that have you enter all tips into a pool and split with the kitchen staff, or tips charged on a credit card, I'm not sure how that works. There might be a paper trail (W2) that keeps track of it and makes reporting it unavoidable, I have no idea on that.

Restaurants are required to police the tips. I'm sure some slip by but it's on the employer to have them reported.

I'm sure the cashless age has made it easier to track. 20 years ago when it was mostly cash, was too easy to just pocket it and not claim it. 

Gern Blansten

mace1229 said:

Gern Blansten said:

mace1229 said:

lastexitlondon said:

I only ask because if tax free and a cash perk I get that. If tax is coming off a tip and the price is set already low because a tip is assumed? Or the price is high enough and the tip makes it higher 

You are supposed to claim tips. But do you really think that a server or bartender who makes $300 cash a shift is going to accurately claim all of that on their returns? My friends in college who were servers certainly didn't, and they got mostly cash tips back then.

Now, restaurants that have you enter all tips into a pool and split with the kitchen staff, or tips charged on a credit card, I'm not sure how that works. There might be a paper trail (W2) that keeps track of it and makes reporting it unavoidable, I have no idea on that.

Restaurants are required to police the tips. I'm sure some slip by but it's on the employer to have them reported.

I'm sure the cashless age has made it easier to track. 20 years ago when it was mostly cash, was too easy to just pocket it and not claim it. 

I tipped some moving guys about 15 years ago when we last moved. The main guy wanted me to drive to an ATM and get cash to tip them rather than charge it because he said they wouldn't get the tip until the next paycheck.

When I told him I wasn't going to do that he flipped out and stomped off. 

But yeah...definitely easier to track now and I'm guessing most cash tips don't make it on the report. 

Bentleyspop

mace1229 said:

lastexitlondon said:

Are tips exempt from tax?. Is this why it's a big thing?

No, they aren’t exempt. But I guarantee most people don’t claim them when you tip in cash. I don’t know how the paper trail works when you tip using your card, but if it’s not on any official record they aren’t being claimed either.

It differs from state to state but credit card tips usually taxout at about 40%.
Obviously cash tips no tax as almost one declares them.
However if you are a tipped worker and you want to buy a house, car, etc you have to make daily deposits in a bank to create an earnings trail which is then usually taxable.

mace1229

Bentleyspop said:

mace1229 said:

lastexitlondon said:

Are tips exempt from tax?. Is this why it's a big thing?

No, they aren’t exempt. But I guarantee most people don’t claim them when you tip in cash. I don’t know how the paper trail works when you tip using your card, but if it’s not on any official record they aren’t being claimed either.

It differs from state to state but credit card tips usually taxout at about 40%.
Obviously cash tips no tax as almost one declares them.
However if you are a tipped worker and you want to buy a house, car, etc you have to make daily deposits in a bank to create an earnings trail which is then usually taxable.

Even in states where your hourly pay is $2 because tips is considered your income, its still taxed at 40%?
I could see if that wasn't your primary salary, like hair stylist, the tip is a bonus and taxed s such. But if the tips are the majority of your wages, and you don't even make minimum wage without them, I'm surprised it's that high and not taxed as normal income. 

Gern Blansten

mace1229 said:

Bentleyspop said:

mace1229 said:

lastexitlondon said:

Are tips exempt from tax?. Is this why it's a big thing?

No, they aren’t exempt. But I guarantee most people don’t claim them when you tip in cash. I don’t know how the paper trail works when you tip using your card, but if it’s not on any official record they aren’t being claimed either.

It differs from state to state but credit card tips usually taxout at about 40%.
Obviously cash tips no tax as almost one declares them.
However if you are a tipped worker and you want to buy a house, car, etc you have to make daily deposits in a bank to create an earnings trail which is then usually taxable.

Even in states where your hourly pay is $2 because tips is considered your income, its still taxed at 40%?
I could see if that wasn't your primary salary, like hair stylist, the tip is a bonus and taxed s such. But if the tips are the majority of your wages, and you don't even make minimum wage without them, I'm surprised it's that high and not taxed as normal income. 

It's not taxed at 40%....it shows up on your W-2 as wages so it's whatever tax bracket you are in.

You do have to pay SS/Medicare on it though

cutz

BLACK35 said:

I got some gas this past weekend at a local station and when I paid with debit card, the machine asked if I wanted to leave a tip. That was an easy NO.
but tipping for getting fuel, that’s a little ridiculous!

WOW !!

Is it getting so out of hand that people will stop Tipping, or rarely tip? 

PJ_Soul

mace1229 said:

lastexitlondon said:

Are tips exempt from tax?. Is this why it's a big thing?

No, they aren’t exempt. But I guarantee most people don’t claim them when you tip in cash. I don’t know how the paper trail works when you tip using your card, but if it’s not on any official record they aren’t being claimed either.

Back in the day, like the '90s, nobody claimed any of their tips (it was truly awesome as someone in the industry during university, lol). But since then they have completely cracked down on it in Canada. Any business with a system that makes it easy to get away with not claiming tips is really putting itself and its employees at risk.

Malroth

Every discussion on tipping needs this scene included.  Literally changed my young 18 yr old mind long ago.

https://youtu.be/M4sTSIYzDIk

cutz

Tipped out? Tapped out? Businesses have ways to make you leave more.

November 23, 2023 

When Darryl Tom ate at a

ewery in suburban Chicago lately he purchased a few of costly bottles of barrel aged beer a sandwich to go along with a beer while he waited The bill came to eighty and also probably the lowest suggested tip shown on the restaurants iPad was twenty or maybe sixteen

The request felt egregious on several levels stated Tom a lawyer that has learned his tipping etiquette Not only was there little to no service though the sum was estimated on the after tax total

Conventional etiquette doesnt need a tip for takeout Though in case the purchase is actually huge complex or maybe

ought to you curbside by staff then a ten gratuity is okay experts declare And tipping is incessantly calculated over the pretax amount generally fifteen to twenty for sit down meals

Tipping requests have erupted in the past few years Everywhere you go a jar a receipt or maybe a checkout screen displays a suggested amount pressuring you to tip Businesses usually immediately ask for suggestions even in case it s not justified and include a very helpful guide with different proportions to help make the math simpler

Though buyer beware those prompts can result in overtipping experts say

DoorDash warns buyers since whether they dont consist of an initial idea for their distribution motorists they can anticipate longer delays for the orders of theirs That change caused a ruckus on social networking with several clients asking why they must tip before knowing in case they ll obtain service that is good or maybe in case they need to be the ones bearing the brunt of compensating wages for DoorDash

Historically tips have been created for services properly performed said Rob Burnette chief executive and investment adviser at financial planning firm Outlook Financial Center in Troy Ohio However it s morphed into an expectation by servers not simply to tip but tip generously or perhaps they ll call you out

Other means companies are tugging in larger tips

Calculating hints on the after tax length rather than the pretax whole Tipping should be pretax because tax rates differ from city to community and have absolutely nothing to do with service Burnette said

Calculating tips with charges as a charge card processing fee included

Calculating tips on after tax amount AND with fees included

Including a suggested tip manual according to the after tax amount after fee and after an automatic gratuity is included

Asking for suggestions when there s little to no program like at a coffee store counter or even when customers acquire a takeout order

After over 2 years of increased inflation companies feel squashed and also searching for ways to pass on costs by charging credit card processing fees and also requiring far more ideas for staff experts say

In case workers earn larger tips then companies might not need to pay higher wages

Servers for instance are usually given substantially less than minimum wage due to the hope that the tips of theirs will drive them to or perhaps above minimum wage In case they dont generate more than enough to reach minimum wage the law demands the company to recover the difference More ideas ka10ka would imply smaller and zero difference that the organization has to treat

Places like California Minnesota Washington and Washington D C need companies to do exactly that & ka10ka the city of Chicago recently passed a measure to boost the minimum wage for tipped workers

Tipped employees in states which removed the subminimum wage enjoy larger earnings deal with less harassment on the project and are not as likely to live in poverty based on Human Rights Watch citing research from The Economic Policy Institute the One Fair Wage plan and others

Others have argued that wages might have risen for those employees but tips fell Paying tipped employees higher wages reduces the tip percentages those workers get Michael Lynn professor at the Cornell Faculty School of Hotel Administration published in a 2020 study

Consumers however might anticipate higher prices 80 % of the 315 Chicago restaurant owners surveyed by the Illinois Restaurant Association in August stated they d raise menu prices and eighty nine said they may add automatic service charges and charges to consumer checks

Where would be the major tippers Tipping point Best and worst states for tips

Check your bills do your personal mathematics rather than being dependent on the suggested tips and know tipping etiquette

It s an individual phone call in case you wish to tip a good deal Burnett said If you have great service take proper care of your server

Tom the Brewery consumer in a tip was left by Chicago But he provided a custom tip of six rather than the suggested sixteen dollars.

F Me In The Brain

Topical article, but a difficult read. What site published something so disjointed and poorly written?

mickeyrat

F Me In The Brain said:

Topical article, but a difficult read. What site published something so disjointed and poorly written?

https://www.gethealthydeals.com/blog/2023/11/23/tipped-out-tapped-out-businesses-have-ways-to-make-you-leave-more/

F Me In The Brain

mickeyrat said:

F Me In The Brain said:

Topical article, but a difficult read. What site published something so disjointed and poorly written?

https://www.gethealthydeals.com/blog/2023/11/23/tipped-out-tapped-out-businesses-have-ways-to-make-you-leave-more/

Thanks -- looks/reads like trash on their site as well.  Oh well....