01-13-2013 08:22 AM
01-13-2013 08:47 AM
01-13-2013 08:50 AM
+1. Waiters like to under report their tips and can't get away with it as easily for cc tips. I wouldn't be surprised if a restaurant tried to take the swipe fee out on a prorated basis from the tip (though I don't remember that happening back when I waited tables). But that wouldn't persuade me to change how I tip. It's a cost of doing business for the waiter as well as every other business establishment.
Actually most waiters restaurant employers do charge a fee for converting tip on credit , which is why they prefer cash. Not to say their are not any who don't under report though .
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01-13-2013 09:00 AM
My family and I own and operate a restaurant - servers would much rather see a cash tip. Everytime they get a CC tip the POS (point of sale) keeps track of it, and when they "cash out" at the end of the night they have to report what they earned so they can be taxed appropriately. Less CC tips = less of a record of how much money they made. We do have a percentage that they have to stay above in order to satisfy the tax man, and protect them. Most places are similar. If I have cash on me when I go out I leave cash... Otherwise its a CC tip. But if you are leaving something decent im sure your server will be appreciative!
01-13-2013 10:20 AM
01-13-2013 10:50 AM
01-13-2013 10:51 AM
Nope. Don't leave cash tip. I'm not going to make two payments just to assist the server in committing a criminal act. Pay your fair share in taxes. I definitely do.
The amount they are required to declare tip wise is above the minimum (it is a percentage of their sales) - and personally we have never had an issue with the IRS. I worked at a couple other restaurants where that percentage was 10% of cash sales, and another that was 15%. This isn't including tip pool if applicable. What the server declares above that percentage (which we also DONT tell them what the minimum % is) is up to them. Professional servers obviously want their W-2 to be higher so they can buy cars, get loans, etc etc... and have the proper documentation to prove it if needed. However the college student working part time, no, I don't think would declare 100% because they are trying to make as much as they can. My servers usually make between 30-75 a check depending on how much in cash tips were claimed and how many deductions they chose on the W-4. This is very common in the service industry. Restaurants, bars, clubs, lounges.. You get the point. "criminal act"? Him that's debatable. Grey area? Maybe. Trust me I pay my fair share of taxes (sales, payroll, property), and provide about 50 jobs in my community! I guess I don't mind leaving cash when I have some because I know how it is in the industry.
01-13-2013 11:04 AM
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