Let's talk about tipping for a moment. For those unaware, in the US tipping is the social norm where a customer gives a server a small gratuity in appreciation of service. Generally, about 20% of the bill.
It is customary to tip, and some people depend on tips to make ends meet. I get that, and I generally play along. However, what pisses me off is when an establishment decides that tipping is an entitlement. And don't get me started on the little theater where they hand you a tablet and then turn around so that you can add the tip without then seeing.
Some establishment are real sketchy about how they handle tips. Especially if you put them on the tablet where the management gets to decide who gets what. That is sketchy as hell.
President Trump has floated a campaign promise to make tips non-taxable, and I applaud the initiative. Tips should not be taxable. So, what I have started doing is paying tips in cash. Let the server decide what to do with it. If he or she wishes to share it, that's fine. If he or she decides to pocket it and keep her mouth shut, that's okay too.
This requires a little pre-planning. You need to keep a little cash on hand. But, I generally applaud the idea that tips are not taxable. It's even harder for the restaurant or government to track if the tips are in cash. Let Freedom Ring.
7 comments:
I started tipping in cash whenever I could several years ago when I noticed that often credit card tips I wrote in never got charged to my card, so the server never got them.
Additionally, I've heard stories of restaurants taking large taxes and other shenanigans with tips (including reducing pay rates when tips were high).
Cash tips avoid all that. I also try to pay in round numbers, or at least while dollar amounts to keep coins out of the equation.
I usually have enough small bills to not need change, which helps when it's time to leave.
Jonathan
We, hubby and I, were road warrior for 19 years. Had many places that added tip % at end of bill. Hubby always checked to see if the amount included the tax. Something most don't catch. But it was something. It doesn't add much but as we were only going home 1 weekend every two week. But doing this for 25 days a month adds up. Three meals a day for every 13 days on the road. Adds up.
It's even harder for the restaurant or government to track if the tips are in cash. Let Freedom Ring.
Indeed.
I think the IRS imputs the tip income based on the price of the base meal and requires that the restaurant deduct that estimate from the server's paycheck. You can get audited and fined for not paying enough income tax based on what the IRS GUESSES you were tipped.
Agreed! And yes, I tip in cash also.l
My wife and son often work at the local sports arena at the snack bar. Tips are shared among all the people working. Really angers the hard working folks who go the extra mile to accommodate the food / drink purchaser. My wife and son work hard and often receive over $40 in tips in a four hour shift. They will generally bring in about $8 - $10 home.
I did not hear of Trump's plan, but it sounds like a good idea to me. Beats sending in tax money where it gets spent indiscriminately, rather than a worker who could use the extra bucks when shopping.
https://www.thegatewaypundit.com/2024/06/going-viral-diners-across-country-are-joining-new/
GOING VIRAL: Diners Across the Country Are Joining a New Trend — Writing ‘Vote Trump, No Taxes On Tips!’ on Server Checks
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