This is true, thats why many don't report all their tips.As a server and bartender for many years, I can tell you that a very large portion of servers do NOT get minimum wage + tips. If a server reports their tips and make a certain amount, the restarurant will withdraw the minimum wage and pay them nothing. I can't tell you for how many years I recieved a check with a big VOID where the amount should be. Now the Credit Card companies are going to dip into that too? Servers are already one of the lowest rungs on the totem pole as far as wages are concerned and now this? Count me in the 100% against category.
Cash baby. If it is credit card tip, I do report it (no way around it) but if it cash, generally I don't report itYet if you don't report your tips, you get shit on when income tax season comes around. It's lose-lose.
Heh. luckily those days are WAY behind me (over 20 years) but yea. You should report full but man, those were hard times.I'd rather lose out on the extra $20 a check to get a 500-700$ check on income tax returns. I reported full tips.
Added at: 15:33
Not to mention if you ever needed to apply for a loan, if you didn't report your full tips, your total income looked pathetic and qualifying for anything would be next to impossible.
They're working full time (ie, 40 hours a week) and they are only making $18,000 per year, and they have no other means of assistance (school funds, other work, spouse, family, etc)?Because according to alot of polls that's nearly if not already poverty levels. Should they be taxed further because their employer, who already takes away their regular paycheck due to their tips, doesn't want to cover it?
Sorry for the double post but sometimes people can't find a better job.They're working full time (ie, 40 hours a week) and they are only making $18,000 per year, and they have no other means of assistance (school funds, other work, spouse, family, etc)?
Then the problem isn't that the restaurant is charging them $8/month to process their tip transactions, the problem is that they need a job that will support them.
If they are working full time (40/hr week) then $18k is the minimum they should be getting, as well as medical and other benefits. If they are working less than full time, they need a second job.
If $100/year is going to make or break them, they should switch careers.
Did they not know that going into waiting was not going to make them much money?
Logically speaking, they don't have to.Credit card processing fees are 1.5% to 3%, so I can understand the restaurant passing on the cost of the tip's fees to the waitstaff. Even if they receive a $20 tip on a $100 meal, the waitstaff is only down by $0.40 for that tip. The restaurant still has to pay the $1.00 fee for their $100 worth of CC processing for that order.
Do they expect the employer to pay the full credit card processing fee for their tips? If they were salaried, then sure, but they are receiving cash directly from the customer - except in this case they are forcing the employer to pay for the credit card machines, and the fixed fees (monthly and per transaction). It would be no different if they each carried their own credit card machine around and had their tip run through that (say, square, or paypal, etc) and the food costs run through the employer's machine.
Why should the restaurant cover it?
The majority of people I knew in the industry did not have assistance AND they had a kid or two they were raising on their own. Also, are you saying that a company should tax a povertish employee more, because they have outside assistance just to get them by?stienman said:They're working full time (ie, 40 hours a week) and they are only making $18,000 per year, and they have no other means of assistance (school funds, other work, spouse, family, etc)?
You're totally right. The people who have those jobs are those who dreamed their whole lives to get it and are living the dream.stienman said:Then the problem isn't that the restaurant is charging them $8/month to process their tip transactions, the problem is that they need a job that will support them.
Except the medical benefits that a restaurant offers, only offers it by taking out of their paychecks, which they already don't get.stienman said:If they are working full time (40/hr week) then $18k is the minimum they should be getting, as well as medical and other benefits. If they are working less than full time, they need a second job.
See two replies up.stienman said:If $100/year is going to make or break them, they should switch careers.
I'm starting to feel like a broken record but you did reply the same thing 3x.stienman said:Did they not know that going into waiting was not going to make them much money?
Most people do that job because they can't get another one. It isn't many peoples life ambition.
Ah, so the restaurant is a charity organization. Gotcha.Sorry for the double post but sometimes people can't find a better job.
I have NEVER heard of a waiter getting benefits of any kind, ever, in the United States. They usually just schedule you for an hour short of full time so they don't have to pay the expense. Unless your waiter can speak more than one language and is impeccable otherwise you simply can't justify the expense. It's a huge overhead in a market that already operates on razor thin margins.If they are working full time (40/hr week) then $18k is the minimum they should be getting, as well as medical and other benefits. If they are working less than full time, they need a second job.
I believe restaurants have a legal protection that lets them get away with not paying minimum wage and I believe it's because employees can collect tips (but don't quote me on that).The only rub I have is that the processing fee should be taken prior to the minimum wage calculation - the restaurant should be paying them at least minimum wage take-home, after tips and processing fees are calculated.
I am not sure what approach are you taking this. I am not sure what waitstaff you hold before, but sometimes people can't get other job cause this might be the only thing they know.Are you all really going to argue that the restaurant owes waitstaff a full living?
* Some people enjoy waiting, and that is their career. They have to organize their life so that their career supports them.
* Some people merely want a part time, no strings attached job, with a reasonably low learning curve to fill in extra time and bring in cash to supplement their current lifestyle, such as students.
* Some people, for whatever reason, are waiting, don't enjoy it, and find that it doesn't meet their expenses.
Waiting is perfect for the first two groups.
It is horrible for the third group.
Is it your argument that restaurants should cater to the third group of people, and operate what would essentially be a charity organization? I say charity in that they are not performing skills and work that is worth more than $16k/year.
My approach is simple. If I run a restaurant and I can get college kids to staff it for $2.35/hr plus tips, and they pay their portion of the credit card processing, then why would I hire people who cost more to do the same thing?I am not sure what approach are you taking this.
So you seem to think it's automatically ethical for or morally right for the business to force their staff to help pay for business expenses. Can you explain that to me? I've never had a job where I was forced to pay for business expenses out of my own personal money. Why is it "morally right" in the service industry? If you build a computer for a client do they expect you to pay a percentage of the electronics you buy? I'm not saying your argument is invalid but you are claiming there is a moral/ethical rule that says it's okay for them to do this and I'm trying to figure out where that comes from?I agree that the restaurant should simply consider it a business expense and cover it for the waitstaff. I disagree with those who say that the restaurant is doing something wrong, ethically or morally, by sharing the expense with the waitstaff.
customer are not force to pay any tip. As a previous waitstaff, I tip according to service. If I get bad service, I don't tip. Of course there are people out there who are cheap and don't tip anyways.My approach is simple. If I run a restaurant and I can get college kids to staff it for $2.35/hr plus tips, and they pay their portion of the credit card processing, then why would I hire people who cost more to do the same thing?
If I pay more and get the same thing, I am a charity.
I don't disagree with you all on the cost of living, and how much $23 means to someone scraping the bottom of the barrel. I'm hardly one to talk as we live a relatively wealthy lifestyle, but just yesterday we canceled our $8/mo netflix subscription, and we're taking the bare minimum car trips necessary, and making the baby go longer between diaper changes because we're in a tight spot this month.
But the value of money to the employee has no bearing on what the employer should be doing. They are paying the market rate for the skills and labor they are asking employees to complete. If they need more skilled employees, they pay a higher rate. The only reason they aren't paying less is because of minimum wage and our tipping custom.
The reality is that waiters are currently making more than what they are worth, as determined by the market. They are already propped up by the minimum wage system, and restaurant customers are already forced to pay more for this service than they would be worth in a truly unencumbered market.
It is charity, legislated by the government.
When you live in a country with minimum wage laws? Yes.Are you all really going to argue that the restaurant owes waitstaff a full living?
Heh. It is like business charging 200-300$/hr for a tech to service while the tech is only paid 25$/hr The company cover all the cost and thus get the extra money, but I can't see a company taking a percentage of the tech 25$/hr cause the rise in fuel (if the tech drive company car like Think Geek)So you seem to think it's automatically ethical for or morally right for the business to force their staff to help pay for business expenses. Can you explain that to me? I've never had a job where I was forced to pay for business expenses out of my own personal money. Why is it "morally right" in the service industry? If you build a computer for a client do they expect you to pay a percentage of the electronics you buy? I'm not saying your argument is invalid but you are claiming there is a moral/ethical rule that says it's okay for them to do this and I'm trying to figure out where that comes from?
OOO... I would love to see a fine print on the receipt for THATWhen you live in a country with minimum wage laws? Yes.
Restaurants are not forced to accept credit cards, but they would probably lose business if they didn't. Credit card fees are an operating cost to provide a convenience to customers and should not be used to penalize an employee who gets a credit card tip rather than cash on the table. Being able to put the tip on the credit card rather than having to carry cash for tips is for the customer's benefit, not the employee's! It's the customer who decides whether to add the tip to the credit card or put cash on the table, so shouldn't it be the customer who pays the extra 2% for that convenience? Why penalize the employee?
People expect that their tips will go to their waitstaff. If they are going to do this, then they need to inform the customers that the restaurant will be taking a 2% fee out of credit card tips.
The tipping system in the US is a payment directly to the waitstaff. The customer is completing two transactions, for two services - one is the food preparation, and one is the delivery and customer care. Legally, the tip must go to the waitperson. Therefore the waitperson is running their own business, and should be willing to cover their own business expenses where the restaurant elects not to.So you seem to think it's automatically ethical for or morally right for the business to force their staff to help pay for business expenses. Can you explain that to me?
To provide even greater value to the customers, obviously. Was that meant to be a trick question?Why penalize the employee?
I understand how the business works. http://www.ehow.com/list_6758966_michigan-labor-law-wages-tips.html for Michigan's version, which closely follows federal standards that all states must adhere to.What you're not understanding is that most restaurants do NOT pay the employee if they report tips. If they do, the restraunt pays the employee NOTHING.
I haven't voted because none of the options really express my sentiment, which apparently is ill-received.What I wonder is where are the limits to that? The logic that it really sounds like you are endorsing (maybe I'm hearing you wrong though), says, "as long as there is someone to work under those terms" is... well, it doesn't sit very well with me for obvious (at least what I think are obvious) reasons.
I thought I explained it earlier. If the customer is paying the waiter directly, and the customer demands to use a credit card, then the waiter has the option of using their own credit card processing service. Why don't they? They want the employer to pay for a service that the waiter is using to profit from. In other words they want to make 2% more than minimum wage by having some of the costs THEY incur covered by their employer. Even after the credit card processing fees are assessed, they are STILL making minimum wage - they have to by law. After the fees are assessed. You get it? They are, in all cases, making at least minimum wage. What you are arguing for is that the employer cover CC fees for the employee, and essentially pay the employee 2% MORE than minimum wage.Makes minimum wage thanks to the customers, not the employer. So now the employer is going to charge the employee on what he makes from the customer even though he's not paying the employee at all? That's really the stance you think is ok?
I would only consider greedy is the restaurant is increase price to cover the charge AND charge the waitstaff.I'm interested to know what people's definition of greedy is, with regard to restaurants. Is there a limit to how much profit a restaurant can make before they are considered greedy? It just seems like a subjective word to use in order to form propaganda against an employee-unfavorable change.
I suppose it's greedy that the restaurant has a dress code and requires employees to buy, wash, and replace clothes they wear to work. I surprised the restaurant is so greedy that they don't cover footwear, which wear out more quickly as a waiter, and are more expensive to provide the proper support for the work load. The waiters use a lot of energy performing their duties, and the restaurant is so terribly greedy they don't even cover meals for them.
What a greedy business!
I say that waiters who don't like how greedy the restaurant owners are should quit their job.
Oh, right, they can't. For some reason they are unable to get another job, and they are chained to the restaurant to work as slaves for slave wages. They have no freedom to learn, grow, and obtain better employment.
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Yes, there are extremes in every situation. It's not necessarily fair. I would prefer the restaurant to cover the cost as a normal part of their business. Vote with your pocketbook.
But to pretend that the entire waitstaff industry is staffed entirely by people who are single, have two children, have to pay $900/mo for a hovel, have no education, and such limited mental capacity that waiting is literally the best they can ever attain really seems insulting to the majority of the real employees in those positions.
You should also add a hint of a condescending attitude and gems of wisdom like "perhaps, just try not being poor?" to keep the streak alive then.Posting because I don't want to break my streak of almost-every-other-post-in-this-thread
Posting because I don't want to break my streak of almost-every-other-post-in-this-thread
I didn't read the rest of this thread because I have to go, but this is the first thing that popped into my head: To attract good waitstaff.Why should the restaurant cover it?
No, you were the first - and it essentially admits the basic premise that you get what you pay for. The restaurant in question obviously doesn't care for its waitstaff, and is willing to settle for worse waitstaff as they migrate to better employers.I didn't read the rest of this thread because I have to go, but this is the first thing that popped into my head: To attract good waitstaff.
Sorry if that was mentioned.
That is what I'm thinking.My bad, I thought you honestly believed what you were posting. Almost believed you channeled Charlie for a minute.
If the business is in a position where $23 will break them, then it's their fault for being a poor business.Not much, but in a business where $23 makes a difference between profitability and closing up shop, this change can make all the difference in the world.
If the person is in a position where $23 will break them, then it's their fault for being a poor person.
He was talking about restaurants with wait-staff, not each and every possible business. A person can be a one-person business. A restaurant with wait-staff cannot be a one-person business.A business is a person. A person is a one-man business.
In what way is this offensive?
Ravenpoe's statement is false. I'm pointing that out by showing him that if it were true for businesses, it would also have to hold true for individuals.
True, but Stienman thinks that if you leave the tip on the CC (i.e. add the tip and total on it) the fee of processing that tip (well process the whole charge) is around 1-3%, so part of that tip (say 10$) the server should fork over 30cent for the fee.After reading through all this... here's my take:
When I leave a tip... that's for the server... not for the damn restaurant. They already got paid from the price of the meal.
I'm not sure what you're saying. Are you saying that basic economic theory that applies to a family (income, expenses, budget, lifestyle) is radically different then basic economic theory applied to a small business (incomes, expenses, budget, business decisions)?He was talking about restaurants with wait-staff, not each and every possible business. A person can be a one-person business. A restaurant with wait-staff cannot be a one-person business.
I apologize. It's not my intent to offend anyone. I'm being somewhat flippant because it amuses me to do so, and I'm not interested in writing treatise length pieces about how a single statement, as applied to a given situation, is true, or false, or somewhere inbetween.Your word wrangling in an attempt to justify your position is being a jackass.
I was actually taking your previous statement, that a waiter that's in such a precarious financial situation that a few dollars would break them is at fault for being in that situation, and using the business analogy to point out that error.Ravenpoe's statement is false. I'm pointing that out by showing him that if it were true for businesses, it would also have to hold true for individuals.
I'd be fine with that if businesses also got the tax breaks individuals have.If I'm a one man business am I entitled to the tax breaks that other businesses are?
When you're talking about specific dollar amounts, yes. $23 to an individual working a minimum wage job is a much larger percentage of their monthly income than it is to a restaurant with a half-dozen employees or more.I'm not sure what you're saying. Are you saying that basic economic theory that applies to a family (income, expenses, budget, lifestyle) is radically different then basic economic theory applied to a small business (incomes, expenses, budget, business decisions)?
Debit cards already incur fees, or will soon.If I want the server to have all the money from the tip, then I pay using cash or debit.
If you incorporate as a business, then you can get certain tax benefits, and certain responsibilities as well.If I'm a one man business am I entitled to the tax breaks that other businesses are?
You say it much better than I.When you're talking about specific dollar amounts, yes. $23 to an individual working a minimum wage job is a much larger percentage of their monthly income than it is to a restaurant with a half-dozen employees or more.
Now if we were talking about 2% of total income... Well, yeah, if 2% is going to make or break you, that's a bad position for a business or an individual to be in. After that fact we look at it differently, though. You say the business should just charge the waiters, and the waiters should take it because it's fair. I say that the business shouldn't charge the waiters, because the business wants to send the message that it values it's employees. It's not "fair" for the business to do that, but I think it's the right choice to make more money for both the waiters and the restaurant.
Added at: 16:55
Debit cards already incur fees, or will soon.
No, I say businesses shouldn't pass that along to their employees, but I don't think it's wrong or immoral to do so - it's merely another business decision.You say the business should just charge the waiters, and the waiters should take it because it's fair.
No.btw have you work as a waitstaff Stienman?
Why legislate? The business already paying the credit card processing fee when they charge a card. The whole argument was since a tip was included, should the fee be pass on to the waitstaff.No, I say businesses shouldn't pass that along to their employees, but I don't think it's wrong or immoral to do so - it's merely another business decision.
There appear to be many people here who imply that the employees are getting shafted, or that the business is being greedy. I disagree - it's a business decision. It's not shady. It's not wrong. It's not something the employees will like, sure, but it's not intrinsically a good or bad, or right or wrong decision. The employees will find new jobs if they don't like the terms, and new employees will file in behind them who don't mind the terms.
Are you saying we should legislate that credit card processing fees for tips should be paid by the employer? Because if it's fundamentally wrong, then that's what should occur, right?
Added at: 18:02
I am curious about this as well. It's very unlikely that the business CC fee is exactly 2%, and if it is, they need to find a new CC processor.I'm also curious if the fee the restaurant is charging fairly reflects the real cost of the credit card fees, or if the restaurant has padded or fudged the numbers to "simplify" the math, while getting more from the waiters than it really costs them to process the tips.
I'd like to reiterate the "business expense" aspect of this. Operating costs, rent, utilities, insurance, licensing, etc should all recouped through revenue, ie the paying customers. I fail to see how a credit card service fee would be any different than a fee charged by the management's accountant, or a monthly bank account fee. The ability to process credit cards comes along with fees. When the management made the decisions to accept cards (a choice they could have made differently) than they must factor into the business plan how to cover those expenses.A restaurant hires wait staff for a certain amount, this is a business expense. You have no business without people to work it.
I disagree. Just because something is wrong doesn't mean it should be legislated against. Something can be wrong without being an injustice. It's wrong to serve an overcooked steak, and a poor business decision, but it's not an injustice that needs to be made illegal. I think it's wrong for a business to slap a percentage fee on tips, and a poor business decision, but it's not an injustice to the wait-staff (unless there are already laws about the handling of tips in general that would prevent such).Are you saying we should legislate that credit card processing fees for tips should be paid by the employer? Because if it's fundamentally wrong, then that's what should occur, right?
So... the tip is not revenue?I'd like to reiterate the "business expense" aspect of this. Operating costs, rent, utilities, insurance, licensing, etc should all recouped through revenue
I'd argue that it isn't. It's akin to a person renting a table at a flea market. They pay a flat fee to lease the space...the market doesn't charge based on how much they sell. The server is working at the restaurant in exchange for the restaurant hiring an employee at less than minimum wage. The 5 dollars an hour under minimum is their "payment" to the restaurant in exchange for the opportunity to make tips.So... the tip is not revenue?
Perhaps if the whole restaurant was set up on a profit-sharing basis I'd agree...but the ownership has their source of revenue in food and drinks...the servers have their services.[/quote][/quote]Just because the revenue goes straight to the waiter doesn't mean that fees incurred to collect the tip should be covered as a business expense.
Gusto's an alright guy to work with, I don't know why you'd have to pay people extra just to do a job with him.since it almost removes incentive for the waiting staff to do their jobs with gusto.
Oh you're that guy.
not quite but maybe. I don't fit into booths though and I get take out.And here's a picture of him!
For what it's worth, if you tip the guy at a fast food place you'll brighten their day just a little. We're your waiter AND your cook.You know what's more offensive to me? The fact that more and more fast food/drink places where you order at a counter and pick it up at a counter are having tip options turned on on their debit machines, where you're prompted to tip the person at the Booster Juice who just tossed the banana in the blender that you're paying 6 dollars for.
Listen, I gotta log on like a bajillion times on my phone 'cause it won't remember me and I'm at work and YOU'RE NOT MY REAL DAD!Oh phil! You are so lazy!
I agree. Living in Asia without a 'tipping' culture has made me hate that even more. It does put me in an awkward position. On one hand, I understand that people rely on these tips. On the other hand, there's times where the actual work the waiter did simply isn't worth the 5 bucks they expect from you and they get indignant if you don't give it to them, because again, they rely on them.You know what's more offensive to me? The fact that more and more fast food/drink places where you order at a counter and pick it up at a counter are having tip options turned on on their debit machines, where you're prompted to tip the person at the Booster Juice who just tossed the banana in the blender that you're paying 6 dollars for.
How many men do you know that work as waiters? I'm pretty sure they don't pull that kind of money.All the waitresses I know seem to make more money than anyone else working service. Most of the girls at the old regular bar would pull in a couple hundred bucks a night on tips.
How many men do you know that work as waiters? I'm pretty sure they don't pull that kind of money.
We leave the moobs out of this, please.Gotta wear them low cut pants and show off the D-cleavage.
Don't kid yourself. What she does, she does for Chaos.We leave the moobs out of this, please.
Also, as an aside, I finally got a chance to look at Shego's new avatar. Shego as an Adeptus Sororitas? Yes, please!
Do you believe the prices would be higher than current prices + tip(15%-20%)? Or would it come out to about the same?Terrik, if you want higher wages for waitstaff so you don't have to tip expect to see significantly higher prices at every restaurant, coffeeshop and bar you visit. That money doesn't magically appear.
But for which Chaos god, I wonder.Don't kid yourself. What she does, she does for Chaos.
I got introduced to 40K through the Eisenhorn trilogy. It's a good a place to start as any.Still on the side rant: I really need to read some Warhammer 40k. This avatar is 100% GasB inspired from the previous thread about the US assassination.
My first thought was Khorne, because what's funner than eviscerating a dude while yelling "BLOOD FOR THE BLOOD GOD!"But for which Chaos god, I wonder.
You'll enjoy the fluff. Everyone dies, or is betrayed, or otherwise gets dicked over by the universe.Still on the side rant: I really need to read some Warhammer 40k. This avatar is 100% GasB inspired from the previous thread about the US assassination.
Bingo. It's not called the service industry for nothing. I don't expect waitresses (or waiters) to be whores. I want them to not treat me like my existence is a huge fucking pain in their ass. I know I'm a pretty easy going customer and am not hard to please.ON-TOPIC: Something that I discovered that got me tips, as a server was actually treating customers as people, rather than an inconvenience. I'd talk to them, if they had an odd accent, I'd ask where they were from (curiously, not challengingly)
Get the Ciaphis Cain Hero of the Imperium Omnibus. Lots of humor, easy to read, and has 3 of the novels and a few of the short stories in a single book. Best bang for your buck.Still on the side rant: I really need to read some Warhammer 40k. This avatar is 100% GasB inspired from the previous thread about the US assassination.
Isn't this exactly what businesses do with programmers and other overseas export jobs? Do you support this?So essentially the business should pay more for employees even if they could get other employees who would work for less. And they should do this because their employees need more money than the business is offering.
What, exactly, does the business get in return for this additional cost when they have the choice between an employee that will pay for the fees, and one that requires the business to pay for the fees? Especially if the employee is still getting at least minimum wage, after the fees are figured in?
So on the top end you're paying your staff 55k a year for janitorial work? I own a business and that seems very high for vacuuming dusting and throwing out trash.Isn't this exactly what businesses do with programmers and other overseas export jobs? Do you support this?
As for me, I say get rid of the whole tipping bullshit to begin with and just pay the waitstaff a regular wage. Believe me, the chick at Denny's isn't going to serve you any better or worse if there's no tip involved.
Thing is that that 2% reporting is really fucking with a class of people that depend on every last dollar to begin with (see our tax the rich thread).
But I do agree with Steiny on one aspect. I don't feel sorry enough for waitstaff to really give a crap one way or another. No one forced them into their jobs; if you don't want to be a waiter, find another low-skill profession with a normal salary structure (i.e. Janitorial work).
I run a janitorial business on the side, and my employees get anywhere from 15-30 bucks an hour with like 25-35 hour weeks. They're all part time to supplement their day-job, and the work is literally just vacuuming, dusting, and throwing out trash. It's not a matter of being stuck in that one profession. There are TONS of low-skill jobs out there. From my experience though, most waitstaff are self-entitled hipster douchebags who feel that the world owes them something because they have to carry your steak and fries to the table.
If anything, I wish waitstaff got a full salary and if they do a phenomenal job (I'm talking short of giving me a hummer at the table), then yeah they should get a nice tip on the side. I really wish I could tip the cooks. They're the ones who really make or break a dining experience.
Of course. I can get a good programmer in the Philipines for $2/hour. There are some things I want programmed here with people I can visit with, but for everything else there's a $2/hr programmer. (cue mastercard commercial)Isn't this exactly what businesses do with programmers and other overseas export jobs? Do you support this?
Very interesting - google books has a preview. http://books.google.com/books?id=RCp-l_HxpIoC&printsec=frontcover#v=onepage&q&f=falseyou guys should seriously read the American Way by carville earle