Tip in cash or credit card?

[jsucool76]

I tip in cash if I happen to have cash, which is rare. Otherwise it goes on the card.

[Uborrow-Upay]

It always goes on the card.

[Open123]

This is why I enjoy dining in SE Asia and Japan so much.  Don't need to worry about tipping since it's considered rude.

[Rhaeny]

Geez well I rarely if ever carry cash so all of my tips are on the CC. I have an app on my iPhone that I use to record the final amount of my receipts in case someone tries to pull something shady. Thank goodness I've never had to personally deal with that but I know others that it has happened to.

[toppers555]

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@Walt_K wrote:
+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.

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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 .  

[aplast]

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!

[Duncanrr]

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.

[colindidit]

That's true ^ at the same if I have a couple dollars in cash ill tip that.. I guess it really depends on the situation

[aplast]

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@Duncanrr wrote:
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.

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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.

[Duncanrr]

To under-report your income is tax evasion and you can go to jail for it. It's a criminal act pure and simple. Yes, there are servers who report the actual amount to tips they earned. My post wasn't alleging that anyone in particular was doing this. Just a statement that it occurs.

If they industry is broken then those involved in it need to fix it. That's not my job. I do appreciate you running a business and employing 50 people.