Quote:
Originally Posted by Larryandlinda
Redwitch quote:
I also agree that tips should not be added to the credit card. You'd be surprised how often the server never sees that tip at all -- it is pocketed by the manager, who is also woefully underpaid (but still makes a lot more than the servers).
whoa! we had no idea!
when the server takes back the signed receipt indicating the added tip they can see the amount
seems like a savvy and deserving waitron would keep at least a rough mental tab on these and seek a fair remuneration.
There is an ongoing move to reform the tipping/tax situation which can be a cash cow for many 'lowly' wait staffers - many who are grinning all the way to the bank - most of which are piggy banks that the IRS never sees.
We are generous tippers but the tax thing and now this credit card tab thing are cause for concern
The tax dodge is also a huge cash cow for the resturanteurs, no?
L&L
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Some restaurants have the policy that customers take the check to the cashier directly. Frequently, a server doesn't have time to open a paybook to see what the tip is (and, technically, they shouldn't since it implies they expect a tip). It's also pretty common for the customer to leave the slip/paybook on the table and someone other than the server will take it to the cashier. So, it's really not hard for the server to never see the tip amount.
As to the tax issue, barring really high end restaurants, it really doesn't make all that much difference. The IRS now takes a set percentage (I believe 15-18%) regardless of what is actually tipped. So, if a customer tips 10%, the server loses an additional 5% of the tip; if 20%, the server gains 5%. Not a lot of difference. The restaurant is the one that calculates what the server earned for tips. So, it is not difficult for the restaurant to do the calculations in such a manner that the credit card fee is also included in taxable income for the server.
Another scam restaurants use is charging the server for a meal whether a meal is eaten or not (with no discounts -- even customers get coupons, but not servers).
Servers really do get cheated a lot. Sadly, more than they even realize. Remember, most severs are uneducated and unskilled. They don't have anything else to fall back on unless they're going to college and this is how they're paying for tuition, etc. The other real exception is the high-end restaurants. Servers there can make over $75,000 a year between tips and salary, but we're talking the tab is $150+/person -- not a TV type restaurant.