I would like to hear someone advise if cash or credit is a better way to tip. Sometimes I would put a modest tip on my card, and another couple of bucks in cash goes to the waiter or waitress. On one occasion I gave a waitress a tip, and gave her an extra dollar for her unborn child.
Inflation has finally gotten through to the Pennys.
They used to go to the laundromat change machine, and get quarters for tips.
Jeff…. and others… it’s kind of complicated…
but basically, employers report an employee’s tips to the IRS, based on tips added to the bill on cards, plus cash tips reported to them by the employee on a special form every month.
If employees illegally under-report their cash tips so the total, including on cards, doesn’t equal 8% of their sales, the restaurant reports it as 8%.
Whatever the amount, it’s taxed as income, and used as part of the base amount for social security withholding and later benefits
So… it depends on how you feel about wait staff under-reporting tips…. IF they do.
Some report every penny, and it makes no difference which way you tip…. some do report less than they actually received in cash…. so they may or may not pay taxes on whatever you give them above the 8% automatically counted.
Thus, if you’re the Pennys, they’ll end up having to pay taxes on an 8% tip even though you only gave then 3%….
because the IRS doesn’t believe it.
Leaving them cash gives them the choice, according to their own feelings, about paying taxes, including building social security and unemployment credits.
Most appreciate that, whether or not they’ll tell you so, or you approve of their reasons. Up to you.
My mother-in-law thinks five dollars is the biggest tip ever. She took my son out for a meal that the bill was $75 for. He refused to leave until she left a better tip.
I fully believe in tipping – when you receive good service! I have ran across servers who seem to think the tip is mandatory…good or bad service. Sorry Charlie, it don’t work that way. I am not gonna reward you for bad service
Jaw Jacker almost 6 years ago
Would love to hear the wait staff’s opinion on this.
Jeff0811 almost 6 years ago
I would like to hear someone advise if cash or credit is a better way to tip. Sometimes I would put a modest tip on my card, and another couple of bucks in cash goes to the waiter or waitress. On one occasion I gave a waitress a tip, and gave her an extra dollar for her unborn child.
SusanSunshine Premium Member almost 6 years ago
Wow… dollars?
Inflation has finally gotten through to the Pennys.
They used to go to the laundromat change machine, and get quarters for tips.
Jeff…. and others… it’s kind of complicated…
but basically, employers report an employee’s tips to the IRS, based on tips added to the bill on cards, plus cash tips reported to them by the employee on a special form every month.
If employees illegally under-report their cash tips so the total, including on cards, doesn’t equal 8% of their sales, the restaurant reports it as 8%.
Whatever the amount, it’s taxed as income, and used as part of the base amount for social security withholding and later benefits
So… it depends on how you feel about wait staff under-reporting tips…. IF they do.
Some report every penny, and it makes no difference which way you tip…. some do report less than they actually received in cash…. so they may or may not pay taxes on whatever you give them above the 8% automatically counted.
Thus, if you’re the Pennys, they’ll end up having to pay taxes on an 8% tip even though you only gave then 3%….
because the IRS doesn’t believe it.
Leaving them cash gives them the choice, according to their own feelings, about paying taxes, including building social security and unemployment credits.
Most appreciate that, whether or not they’ll tell you so, or you approve of their reasons. Up to you.
tcayer almost 6 years ago
My mother-in-law thinks five dollars is the biggest tip ever. She took my son out for a meal that the bill was $75 for. He refused to leave until she left a better tip.
Spooky D Cat almost 6 years ago
In Germany tipping waitstaff is not longer an issue. The Germans decided to make sure the waitstaff receive a fair and decent wage. What a concept!
gopher gofer almost 6 years ago
⇧ @susan
thanks, mansplainer…
Jaw Jacker almost 6 years ago
I fully believe in tipping – when you receive good service! I have ran across servers who seem to think the tip is mandatory…good or bad service. Sorry Charlie, it don’t work that way. I am not gonna reward you for bad service