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Trusted Contributor
Posts: 1,959
Registered: ‎10-07-2013

Re: QUESTION ON FOOD SERVERS' TIPS

@Tinkrbl44My full amount, including tip, shows up on my statement.  If it doesn't, that's their problem, not mine, and it shouldn't be yours.  I wouldn't go back to try to "straighten it out".

Esteemed Contributor
Posts: 7,493
Registered: ‎03-09-2010

Re: QUESTION ON FOOD SERVERS' TIPS

[ Edited ]

@gertrudecloset wrote:

@CoffeeNut wrote:

 


@Love my grandkids wrote:

Both my late DH and I and later our son and his wife have a policy of giving a tip in cash directly to the server. 


 

That's what I do too.  If you put the tip on the credit card then those wages are added to their paychecks and taxes are taken out.   With cash it's immediate income and rarely taxes are taken out because they don't report it. 

 

 


I don't think of any of what you said is true in every instance.  There's a lot to learn about tipping and how the various states follow the laws set by the U.S. Department of Labor  

 

 

Credit Card Processing Fees

 

Q. Tips belong to the employee, but can employers ever make any deductions from an employee's tips? This issue commonly comes up with credit card processing fees. When a customer leaves a tip for an employee on a credit card, can the employer deduct the credit card processing fee from the tips?

 

A. Federal courts and the Department of Labor have generally held that employers may subtract a proportionate amount of the processing fee from an employee's tips, as long as the employee still receives minimum wage. For example, if the customer pays by credit card and the processing fee is 3%, the employer may pay the employee 97% of the tip left by the customer and keep 3%. However, some states have more restrictive laws. In California, for instance, employers may not deduct any portion of the credit card processing fee from the employee's tips.


@gertrudecloset You're talking about different things, @CoffeeNut is talking about taxes being withheld.  Yoiu are explaining about credit card fees.
Yes, employers are required to report and withold taxes on tips if they're put on a credit card.  It's one of the reasons why many restaurants have stopped automatically adding a certain amount to large parties.

Trusted Contributor
Posts: 1,010
Registered: ‎03-09-2010

Re: QUESTION ON FOOD SERVERS' TIPS

This just begs the qustion "why shouldn't they pay taxes"?  

Honored Contributor
Posts: 8,178
Registered: ‎11-24-2013

Re: QUESTION ON FOOD SERVERS' TIPS

@Tinkrbla44 If you don't have the right bills for a tip, any cashier will be more than happy to make change if you tell them you need it for a tip.

 

Happened to us a couple of times.

Honored Contributor
Posts: 27,382
Registered: ‎03-20-2010

Re: QUESTION ON FOOD SERVERS' TIPS

@Tinkrbl44 

 

Not only restauants but a lot of businesses and banks run tips separately....  The same thing happened to me with a Junk Removal Service, I wanted to make sure they got a tip they did a great job! ..I even called my bank because I saw the charge was only for the service and I knew I had authorized and signed to pay the bill plus the tip ....and the Bank Rep told me a lot of tips are run through separately and it did show up within a day or two.....

Animals are reliable, full of love, true in their affections, grateful. Difficult standards for people to live up to.”
Honored Contributor
Posts: 20,746
Registered: ‎03-10-2010

Re: QUESTION ON FOOD SERVERS' TIPS

I always hand the tip in cash to my waiter and thank them  for their service when I give them  the cash.  I tell the cashier that I tipped my wait person personally. You can still do that. 

Esteemed Contributor
Posts: 7,493
Registered: ‎03-09-2010

Re: QUESTION ON FOOD SERVERS' TIPS


@Love my grandkids wrote:

@Tinkrbla44 If you don't have the right bills for a tip, any cashier will be more than happy to make change if you tell them you need it for a tip.

 

Happened to us a couple of times.


We had the oil on the car changed at the dealership about a month ago.

 

Normally they wash the car while it's there but I guess due to Covid they weren't doing it but gave us a coupon for a free wash at the car wash across the highway.

 

My husband went in to ask if they could give him change and when they told him no, they didn't do that he told them well, I guess then the workers won't get a tip.  They gave him change.

Honored Contributor
Posts: 30,335
Registered: ‎08-23-2010

Re: QUESTION ON FOOD SERVERS' TIPS


@Cats3000 wrote:

@Tinkrbl44My full amount, including tip, shows up on my statement.  If it doesn't, that's their problem, not mine, and it shouldn't be yours.  I wouldn't go back to try to "straighten it out".


@Cats3000 

 

I just wanted to be sure the server got his tip.   

 

As I mentioned upthread, I usually tip the server in cash and my restaurant bill is just for the meal.  This one time I didn't have cash, so I just added the tip to the bill.  I prefer to give them cash and will continue to do so in the future.  

Honored Contributor
Posts: 12,357
Registered: ‎07-09-2011

Re: QUESTION ON FOOD SERVERS' TIPS


@Junebug54 wrote:

This just begs the qustion "why shouldn't they pay taxes"?  


@Junebug54 

 

I don’t think anyone said they shouldn’t.

"Animals are not my whole world, but they have made my world whole" ~ Roger Caras
Honored Contributor
Posts: 30,335
Registered: ‎08-23-2010

Re: QUESTION ON FOOD SERVERS' TIPS

[ Edited ]

@Junebug54 wrote:

This just begs the qustion "why shouldn't they pay taxes"?  


 

@Junebug54 

 

No one said that.   

 

Remember this ....   laws vary by state and improvements in wages have been made ... BUT  ..... it used to be that food servers were (legally)  paid an hourly rate even lower than minimum wage, with the rationalization that they also get tips.    (Huh?)

 

So, while trying to survive on less than minimum wage, and getting tips which can range from generous to nothing, ... people need that cash just to get through the month!  

 

If someone is making LESS than minimum wage at their job, just how much do you think they would be paying in taxes?  Just my guess here, but I would think that taxes deducted from food servers'  paychecks would probably more than cover annual taxes owed.   JMO