Should I still tip 15%?

[kwilkinson]

Originally Posted by Douglas

When I waited tables this was never the case. In fact, I'm not sure how it could even possibly be the case. Your earnings, as far as the restaurant can declare, are what they cut you a check for. They cannot arbitrarily report some random amount and deduct payroll taxes from it.

Most nicer restaurants do tip pooling where the tips are actually recorded, split, and given out in the form of checks on opposite weeks of paychecks.

 

[milosz]

On the flip side of that, the way a woman treats servers/grocery clerks/etc. can be a dealbreaker for me. If she's a ***** to the poor marsupialed kid sacking groceries, I don't want anything to do with her.

 

[MrDaniels]

Originally Posted by Cary Grant

Unless something has changed, you should include the price of the wine. Why? Taxes - for the wait staff.

It used to be (I think it still is?) that the restaurant reports a percentage of the total tab as the employee's earnings. So let's say it's 10%. If you have a $100 tab for food and $200 for wine, they are being reported in their taxable earnings on 10% of $300, not just the food.


You are absolutely right. Where did this Urban Legend about not tipping on beverages come from? Undoubtedly someone very, very cheap and selfish.


If you can drop $150 on dinner for two, you should not be dickering about a few bucks for a tip.

 

[Cary Grant]

Originally Posted by Douglas

When I waited tables this was never the case. In fact, I'm not sure how it could even possibly be the case. Your earnings, as far as the restaurant can declare, are what they cut you a check for. They cannot arbitrarily report some random amount and deduct payroll taxes from it.

I wasn't clear enough- I mean reporting estimated tips in addition to your hourly wage.

 

[DrZRM]

That's not right. They tax you on assumed wages including tips. They are generally under-reported (as Cary Grant said above) but you do pay taxes on estimated tips. I bartended through college and part of grad school. This may differ state by state, but I doubt it, as most of the taxes were federal. If you only were taxed on the pittance that restaurants are able to pay you for base wages (well below the minimum wage BTW) you would not have to pay taxes at all (and for what it is worth, you'd be eligible for food stamps). They take tips into account for your base pay. They can use credit cards percentages to get a pretty good estimate of how much a restaurant takes in in tips.

Originally Posted by Douglas

When I waited tables this was never the case. In fact, I'm not sure how it could even possibly be the case. Your earnings, as far as the restaurant can declare, are what they cut you a check for. They cannot arbitrarily report some random amount and deduct payroll taxes from it.

 

[milosz]

The way (most) restaurants work:

Your waiter will be paying out 3-5% of their gross sales in bar tip-out, hostesses, busboys, etc.. When you **** your waiter by not tipping or tipping a lower percentage on an expensive meal, you are costing them money for the privilege of having waited on you. **** you very much, die slow, etc..
They also pay that on liquor/wine sales, so do not exclude those.

At the end of the night, the waiter must claim all of their credit card tips and are strongly encouraged to claim 10% of their cash sales so both sides can avoid any troubles with the IRS. It's been a while since I had to go through the process, I can't remember whether or not that was 10% of gross after tip-out or before.

And no, the restaurant will not let you claim no tips - in that case, they would be liable to make up the difference in your tipped-employee wage ($2.13 in most states) and whatever the state minimum wage is.

 

[Cary Grant]

^^This- so it hasn't changed.

There was like zero diligence about this in the 80's. Bars, restaurants, strippers would make a ton in tips but were taxed as a pauper.

 

[shoreman1782]

Originally Posted by kevinbrownshakedown

It's pretty standard practice to not tip for alcohol at a restaurant. So if your $150 meal was including a $60 bottle of wine, tip for $90.

In the U.S.?

It doesn't sound like you're buying wine often yourself or someone likely would have confronted you on this by now. I would think if I left $13 on a $150 bill the waiter would likely ask me if everything had been OK, with a concerned/angry look.

 

[MrDaniels]

Originally Posted by Cary Grant

^^This- so it hasn't changed.

There was like zero diligence about this in the 80's. Bars, restaurants, strippers would make a tone in tips but were taxed as a pauper.
This sort of thing started happening in the 90s. Strippers can still get away with this, because you can't prove a tab on a g-string.

 

[JayJay]

Originally Posted by MrDaniels

Where did this Urban Legend about not tipping on beverages come from? Undoubtedly someone very, very cheap and selfish.


If you can drop $150 on dinner for two, you should not be dickering about a few bucks for a tip.
I never exclude the cost of alcohol from tips. I've never heard of this.

 

[archetypal_yuppie]

Originally Posted by menofcharisma

I tip 20% no matter what--people live off of tips, so unless they're terrible I'll give them that percentage no matter what. Same goes for cabs, my friends always wonder why I tip NYC cab drivers so much.

NYC cab drivers keep the fare and your tip. They pay 100 - 150 $/day for the cab. Common misconception, but cabbies are not living off of the tips.

 

[dv_indian]

You are already spending $150. Why not go all the way and spend $172.50 with a 15% tip? I would pay the usual 15% tip or avoid the $150 dinner altogether if the amount of tip bothered me.

 

[cmsmith]

Originally Posted by milosz

The way (most) restaurants work:

Your waiter will be paying out 3-5% of their gross sales in bar tip-out, hostesses, busboys, etc.. When you **** your waiter by not tipping or tipping a lower percentage on an expensive meal, you are costing them money for the privilege of having waited on you. **** you very much, die slow, etc..
They also pay that on liquor/wine sales, so do not exclude those.

At the end of the night, the waiter must claim all of their credit card tips and are strongly encouraged to claim 10% of their cash sales so both sides can avoid any troubles with the IRS. It's been a while since I had to go through the process, I can't remember whether or not that was 10% of gross after tip-out or before.

And no, the restaurant will not let you claim no tips - in that case, they would be liable to make up the difference in your tipped-employee wage ($2.13 in most states) and whatever the state minimum wage is.

This is important. The tip out can be brutal. A friend of mine who serves gets people who refuse to tip at all on occasion and she finds herself paying to serve them as she has to tip out on % of sales. Even if service is bad you should always tip a few % just to cover that.

 

[Cary Grant]

Originally Posted by cmsmith

This is important. The tip out can be brutal. A friend of mine who serves gets people who refuse to tip at all on occasion and she finds herself paying to serve them as she has to tip out on % of sales. Even if service is bad you should always tip a few % just to cover that.

I agree except for the "even if service is bad" part. I'll never reward incompetence.

 

[JayJay]

Originally Posted by Cary Grant

I agree except for the "even if service is bad" part. I'll never reward incompetence.

+1. No way will I leave a tip if the service rendered was poor, and the fault of the server.