Quote:
Originally Posted by Shimpy
Obviously they are hiding their tips from the IRS.
|
The reason is if you charge the tip the shop owner will be paying a credit card processing fee on the sale including the tip and that could be up to 3%. The shop owner has to absorb the fee on the tip. He can't tell the stylist that he is going to subtract 3% on the tip she is owed. 3% on a $20 tip might not seem much but if it is a busy salon with a lot of stylists the fees add up quickly.