Quote:
Originally Posted by Bill14564
Possibly not but there needs to be an explanation for what it is.
I see a line for Corazon Iced Tea so I assume the diner received Corazon Iced Tea and the charge is for the Corazon Iced Tea. I see a line for Almond Butter Toast so similarly I assume that charge is for the Almond Butter Toast the diner received. When I see a charge for Service I assume that is for the Service I received.
The Service Charge may not be a voluntary tip (the word "mandatory" seems to take voluntary out of the equation) but if it is 15% added to the bill to cover service then it is performing the function of the tip I would have left so I will adjust any additional tip accordingly.
I would prefer to do away with the US custom of tipping but I recognize that it is here today. But the owners should not add fees and charges to the bill to mislead the customers about the true price of the meal and confuse them into tipping more (or less) than they would otherwise choose to.
|
I would just add that the IRS does not consider any mandatory payments for service to be "tip" income that would qualify for the special tax treatment rules that they use. For example, the restaurant could not include mandatory service charges on their W-2 forms as an "allocated tip". And the restaurant could not use mandatory service charges as a credit towards their minimum wage calculation, if they are paying servers less than the minimum wage.