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re: Paying and tipping at a restaurant with a card

Posted on 5/19/13 at 6:12 am to
Posted by shinerfan
Duckworld(Earth-616)
Member since Sep 2009
22169 posts
Posted on 5/19/13 at 6:12 am to
I've no doubt they get the tip in either a nice place or a big chain. What about little Mexican or Chinese joints where you see the whole family working? I've always been a little skeptical and tried to tip cash in those.
Posted by thekid
Anna, Tx
Member since May 2006
3936 posts
Posted on 5/19/13 at 6:14 am to
I work for a large national chain restaurant and my servers only pay 1% tip out to the bartender...they get paid all their cc tips after the shift.
The company only takes their estimated taxes out of their actual pay checks, so at $2.13 an hr they see very little of that money. The average server for my restaurant makes about $18.50 an hour

The higher end restaurants give out pay checks because the percentage of people and the amount of the checks cause most people to pay with a credit card. There isn't enough cash coming in to pay the servers their tips every shift.
Posted by yellowfin
Coastal Bar
Member since May 2006
97604 posts
Posted on 5/19/13 at 6:41 am to
Quit being poor
Posted by SuperSaint
Sorting Out OT BS Since '2007'
Member since Sep 2007
140462 posts
Posted on 5/19/13 at 6:49 am to
They really have had a butt load of clown questions on the OT recently. The OP sounds like a god damn genius.
Posted by Sophandros
Victoria Concordia Crescit
Member since Feb 2005
45218 posts
Posted on 5/19/13 at 6:52 am to
quote:

I completely disagree. The restaurant I work for has gone to paychecks a little over a year ago. At first, it was difficult to manage, but now I love it because I don't go out as much as before and save a lot more money.



Good call on going this route for your restaurant for a lot of reasons.
Posted by tgrbaitn08
Member since Dec 2007
146214 posts
Posted on 5/19/13 at 6:55 am to
quote:

Paying and tipping at a restaurant with a card
Do the waitresses actually get the tip you write on the receipt?




Do you even know how credit cards work?

Posted by barry
Location, Location, Location
Member since Aug 2006
50336 posts
Posted on 5/19/13 at 7:19 am to
quote:

Please tell me where this is common practice


When I worked at Joe's Crab Shack from 02-05 they took it out. It was very small but when you added it up over 1000's of servers
Posted by Blizzard of Chizz
Member since Apr 2012
18942 posts
Posted on 5/19/13 at 7:50 am to
quote:

I always tip in cash. It's easier to hide wages this way


I used to think this was true until I started paying attention to the numbers on the Micros system and other POS systems that I'm familiar with. It makes no difference if you leave a tip on the card or cash. When you enter in zero in the tip amount, that POS system automatically assumes you were left 10 to 12 percent in cash and claims it as such.
Posted by MikeBRLA
Baton Rouge
Member since Jun 2005
16447 posts
Posted on 5/19/13 at 7:56 am to
quote:

I always tip in cash. It's easier to hide wages this way, especially for young people working and going to school.


So you like helping people cheat on their taxes?

Posted by jsquardjj
Member since Oct 2009
1317 posts
Posted on 5/19/13 at 7:56 am to
quote:

quote: Please tell me where this is common practice When I worked at Joe's Crab Shack from 02-05 they took it out. It was very small but when you added it up over 1000's of servers



It wasn't credit card fees you were paying, it was tipshare. Baretender/hosts/busboys
Posted by DownshiftAndFloorIt
Here
Member since Jan 2011
66763 posts
Posted on 5/19/13 at 8:00 am to
No shite?

I might start leaving a penny tip on the card so they don't get the cash I leave them slashed.
Posted by Blizzard of Chizz
Member since Apr 2012
18942 posts
Posted on 5/19/13 at 8:10 am to
quote:

No shite?



Yeah.. I noticed it a while back when I would have no cash sales but the computer was saying I did. I finally realized it was because of credit card sales with no tips left on the card... Damn IRS isn't stupid unfortunately.

Personally I think it's pretty dumb to try to hide a few bucks of income as a server. You are only fricking yourself when you try to get any sort of loan and can't prove what you actually make.
Posted by Antonio Moss
Baton Rouge
Member since Mar 2006
48285 posts
Posted on 5/19/13 at 8:31 am to
quote:

Waiters only have to claim credit card tips. But when you tip on a card your waiter doesn't get the whole tip. Most restaurants make the waiter give up the credit card fee. Somewhere between 5 and 7%






Any business owner that agrees to a 5-7% fee on Credit charges won't be in business for long.

To answer the OP, most restaurant systems automatically record CC tips for tax purposes at the end of the fiscal year. So the only difference between cash and credit for a server is that a server can't hide CC tips from the IRS.
Posted by ATL TGR
Houston
Member since Apr 2008
2878 posts
Posted on 5/19/13 at 8:37 am to
18/hour isn't bad. I'll keep the tip on the card
Posted by Pierre
Baton Rouge
Member since Nov 2005
5278 posts
Posted on 5/19/13 at 9:10 am to
Jesus Christ tipping is out of control. Now we shouldn't tip on credit cards because the wankers bringing you food can't hide that from the IRS. Wtf lol!

Posted by someoldhussy
Candyland
Member since Jun 2007
2439 posts
Posted on 5/19/13 at 10:03 am to
Where I work the card fee is taken out of servers tips. It isn't legal in every state though.
Posted by ace3
Member since Jul 2012
55 posts
Posted on 5/19/13 at 11:09 am to
Depending on the restaurant and how they split the tips, it's usually better to tip in cash. Tips left on a card have to be claimed at the end of the night. The restaurant has no way of keeping track of cash tips so those usually are left unclaimed and waiters can pocket these, claim a smaller percentage, and in the end, share a lesser percentage of their actual tips.
Posted by CP3LSU25
Louisiana
Member since Feb 2009
51150 posts
Posted on 5/19/13 at 12:16 pm to
quote:

Jesus Christ tipping is out of control. Now we shouldn't tip on credit cards because the wankers bringing you food can't hide that from the IRS. Wtf lol!


This

Here's a tip find another job if all they do is complain.
Posted by Walt OReilly
Poplarville, MS
Member since Oct 2005
124092 posts
Posted on 5/19/13 at 1:45 pm to
this is the dumbest fricking question ive ever read on here
Posted by J311slx
Las Vegas
Member since Sep 2011
1978 posts
Posted on 5/19/13 at 2:42 pm to
quote:

Where I work the card fee is taken out of servers tips. It isn't legal in every state though.


Not saying you're wrong but I can't see anyway this is legal. Cc fees are an agreement between the merchant and the credit card processors, not the processors and the merchants employees. Now maybe there is some fine print in the employment packet allowing this that the employee signed off on, but it sounds completely illegal.

What's withheld from a servers cc tips is completely dependent on the company though. The restaurant I work for now withholds 25% of cc tips to put towards taxes/put remainder on the server paycheck. The servers then tip out 1.25% of sales to busboys, 1.25% to bar, and .75% to server assistant. Once that's paid out they leave with 75% of cc and all cash tips.

This varies restaurant to restaurant but have never heard of servers tips going toward cc fees they incurred.
This post was edited on 5/19/13 at 4:00 pm
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