Tipping restaurant servers: Interesting - Page 7

sunshine45 · ‎03-09-2010

If we charge our dinner I still always leave a tip in cash. We know a lot of servers and a lot of restaurant owners. Most of the restaurant owners we know deduct the 2% credit card fee that they pay to the processing company on the tips they collect.

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"The world is a dangerous place, not because of those who do evil, but because of those who look on and do nothing." - Albert Einstein

missy1 · ‎03-10-2010

I always tip in cash.

Deanie · ‎03-09-2010

@Jaspersmomthanks for the enhanced clarification. Dr. Walter Williams, an economist at the U of Chicago, calls the syndrome you describe as leading to the the "gotcha" factor. What he stated, and I am paraphrasing, is that when people realize others are getting away with aberrant behavior they then think of themselves as chumps. Why am I struggling to do this when these others are not? Then,as they adjust their behavior to mirror what the others are doing he says, 'gotcha' Makes sense doesnt it?

Sunshine Kate · ‎03-10-2010

@Veneziawrote:
@Shelbellewrote:
My nail salon has a sign hanging up that says, Please tip in cash.
Which tells you that they certainly aren't declaring the tips as income! I would be asking them why I had to tip in cash, if I was paying with a CC otherwise. Be interesting to hear their answer.

I've always wondered why people tip a hairdresser. The hairdresser sets their prices for a particular service. Whatever the charge, is what they should be paid.

It's unnecessary to dole out more $$. Tipping has gotten so out of hand.

Cakers3 · ‎06-17-2015

We not only tip in cash but pay cash for the entire bill.

The passing of credit card fees is illegal in some states, btw.

Even if legal, the fee cannot exceed the minimum wage the server earns.

I have no problem with servers not reporting all cash tips because they are assessed a % of their receipts for the day and that is incorporated as income in their paycheck.

This may have changed but they certainly do pay tax on tips; the % assessed is supposed to balance against undeclared cash tips.

"" Compassion is a verb."-Thich Nhat Hanh

Venezia · ‎03-09-2010

@Sunshine Katewrote:
@Veneziawrote:
@Shelbellewrote:
My nail salon has a sign hanging up that says, Please tip in cash.
Which tells you that they certainly aren't declaring the tips as income! I would be asking them why I had to tip in cash, if I was paying with a CC otherwise. Be interesting to hear their answer.

I've always wondered why people tip a hairdresser. The hairdresser sets their prices for a particular service. Whatever the charge, is what they should be paid.

It's unnecessary to dole out more $$. Tipping has gotten so out of hand.

@Sunshine Kate- I don't believe that to be true, certainly not in the salons I've patronized over the years. I suppose it could be true, if it's just a single hairdresser, running his or her salon.

But at the ones I've used, the owner sets the prices. The other hairdressers just work there or even "rent a chair"; but they don't control the prices.

If it's the owner, in the past, I often didn't tip, because I paid more to have that person do my hair. If it was one of the others, I did tip. When I lived in England that was the accepted rule - you didn't tip the owner.

"" A little learning is a dangerous thing."-Alexander Pope

TenderMercies · ‎06-03-2017

Many restaurants also have a system known as "tip share." I worked in an upscale steakhouse in NYC as a greeter (host) in my early 20's, and I was part of this terrible system. At the end of each server's shift, they had to give 20% of their tips to the restaurant which would put all the servers' tip money into a pool. At the end of each week, they would divide the tip share pool up evenly among ALL the employees including the servers, cooks, greeters, bartenders, etc. So, not only was I getting a weekly paycheck, I would also get an envelope full of hundreds of dollars in cash along with that paycheck. I was not making a servers salary, I was making $15 an hour. I was netting about $700/week in the year 2000, and that was a pretty good salary for a 20-something. All I had to do was greet people at the front desk, take them to their tables, give them menus, and make sure that every section was evenly sat. Meanwhile, the servers were busting their rear ends and not making much more than I would make. The servers HATED us and the other employees, because of this system. I bet this system is used more often than we think.

SeaMaiden · ‎03-10-2010

@Junebug54wrote:
Why should wait staff not have to pay taxes? I always use my cc and will continue to do so. I always tip on my food tax too. Some subtract that amount. I pay taxes so should servers.

@Junebug54 Servers pay plenty on Tax.

SeaMaiden · ‎03-10-2010

@Junebug54wrote:
Why should wait staff not have to pay taxes? I always use my cc and will continue to do so. I always tip on my food tax too. Some subtract that amount. I pay taxes so should servers.

@Junebug54 Servers pay plenty of taxes.

JeanLouiseFinch · ‎10-03-2011

@Sunshine Katewrote:
@Veneziawrote:
@Shelbellewrote:
My nail salon has a sign hanging up that says, Please tip in cash.
Which tells you that they certainly aren't declaring the tips as income! I would be asking them why I had to tip in cash, if I was paying with a CC otherwise. Be interesting to hear their answer.

I've always wondered why people tip a hairdresser. The hairdresser sets their prices for a particular service. Whatever the charge, is what they should be paid.

It's unnecessary to dole out more $$. Tipping has gotten so out of hand.

Hair stylists are not independent contractors, they don't actually set their prices. In a corporately owned salon, the prices are set for them. If they are in a privately owned salon, their services are probably going to be priced the same as every other stylist in the salon in order to not be pricing themselves out of a client. Even so, I think the hair styling business and tipping is very much misunderstood. There are two ways most salons operate; the stylist may get a commission on her services and there is no chair rent or she gets all the money paid for her services up front and she pays the business owner a chair rent. In the commission situation, I think he/she gets 60% and the shop owner gets 40%. In the chair rent situation, the stylist pays the shop owner a weekly or monthly rent to be able to work there. The rent is several hundreds of dollars, like $200/week, and the stylist is obligated to pay it whether he/she has had a busy week/month with higher ticket services or if he/she only had three haircuts all week. Plus, hair stylists sometimes have to buy their own product to use on the their clientelle and that can get very expensive. In a corporate situation, they get an actual paycheck but their pay rate is determined by their performance, the stylist has no control over her pay other than being a hard, determined worker, in order to consistently reach their sales goals. As the mom of a hair stylist, I know she works very hard to meet her weekly/monthly goals, but there are certain times a year when families may have to make cuts in their budget. The hair is often the first to go, if one of the kids needs new shoes or if an unplanned expense comes along. I know hair stylists rely on tips as part of their income for normal living expenses and to make ends meet.