Will you tip differently?

[superdog]

Given that there is now no tax on cash tips under 25k?

If you think about it, if taxes aren’t being paid they are making significantly more money.

On the other hand, it’s only on “claimed” cash tips, which often times are barely claimed anyway.

I tend to start at 20% minimum. Good service and I’m going up from there. I’d say I pay 25-30% more often than not. And on the whole bill, including tax.

Now though, if the tip is that much more valuable, I’m debating starting at 15%. I’d have to bring cash though, which I’d wager the server would fancy more.

Just food for thought. Not sure I could actually lower it in the moment, but it’s a thought provoking concept.

[MrGoat]

I tip for the service. If it’s great and I want the same I’m gonna tip them 30+ percent. I don’t care if they skirt taxes on it or not.

Any restaurant we frequent gives us expedited reservations and service because we always treat them well.

I will take that as a direct correlation to my tipping and I will continue the tradition.


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[Beo3]

It will not make any difference in the way I tip.

Normally it is a minimum of 20 percent on the entire bill (tax included) and always in cash.

Having a daughter that had worked as a server, I tend to overtip anyway.

[superdog]

Originally Posted by MrGoat

I tip for the service. If it’s great and I want the same I’m gonna tip them 30+ percent. I don’t care if they skirt taxes on it or not.

Any restaurant we frequent gives us expedited reservations and service because we always treat them well.

I will take that as a direct correlation to my tipping and I will continue the tradition.


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Yeah, I tend to agree.

I also frequent the same places a lot. And I tip to keep the service.

But this is still very intersting to me. And I do think there is merit thinking how this unfolds.

I also imagine a lot of people will rethink how they tip.

[AzPaul]

It won't affect me because I tip in smiles.

[enjoythemusic]

Originally Posted by AzPaul

It won't affect me because I tip in smiles.

One of my wife/i fave vacay movies.

[cop414]

I never gave it a thought, I’ll continue to tip as usual, 20% and up from there and in cash handed to my server.

[Pw92676]

Will not impact how I tip.

[94Gamecock]

Originally Posted by superdog

Given that there is now no tax on cash tips under 25k?

If you think about it, if taxes aren’t being paid they are making significantly more money.

On the other hand, it’s only on “claimed” cash tips, which often times are barely claimed anyway.

I tend to start at 20% minimum. Good service and I’m going up from there. I’d say I pay 25-30% more often than not. And on the whole bill, including tax.

Now though, if the tip is that much more valuable, I’m debating starting at 15%. I’d have to bring cash though, which I’d wager the server would fancy more.

Just food for thought. Not sure I could actually lower it in the moment, but it’s a thought provoking concept.

“Cash” tips include credit card tips as defined by the IRS. The term “cash” is meant to differentiate between currency no matter how it’s paid and other items. Almost all restaurant tip income is reported now because everyone uses credit cards, and that’s all included in what is now tax free.

[subtona]

Tipping is off the rails.

Prices in restaurants have increased significantly. Tips are tied to those increases.

Maybe I have been in a bubble but the tip range I have worked off my whole life has been 15/18/20%
It seems in recent times those have risen to 20/25/30% on top of the increased food prices and on top of a significant increase in minimum wage.

Compounded by every over the counter exchange to go, never a history of tipping here, is now expected. Such as a cup of coffee, loaf of bread or a slice of pizza.


Unfortunately as a result of technology apps to pay the bill with, I don’t think most give it much thought.

Something’s got to give.

PS there was also a differentiation between counter service and table service, that education has vanished along with the premise of tipping on the total of items ordered not the taxed amount.

And then there is post Covid wait staff who has lost much of the training and experience of their predecessors … unfortunately the mechanism to educate them by reflecting on their tip has been watered down as per above.


End result is fewer times eating out and higher quality food at home.


Left with the anwkwardness of ordering a slice of pizza and being prompted for a tip.

[MrGoat]

I missed adding this on my first comment but, there is places we frequent that have a month lead time on reservations. I get preferred service because every server, bartender and the owner knows me and I know them and I take care of them. Tipping well is one of the reasons the servers all remember me.

I look at it as, what’s $1000+/- in tips over the month if it gets me a reservation the next day that normally takes a month? Or the chef comes out and offers us something incredible they’re just trying out? These things don’t happen to those that don’t treat the servers well.


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[Moondoggy]

Originally Posted by subtona

Tipping is off the rails.

Prices in restaurants have increased significantly. Tips are tied to those increases.

Maybe I have been in a bubble but the tip range I have worked off my whole life has been 15/18/20%
It seems in recent times those have risen to 20/25/30% on top of the increased food prices and on top of a significant increase in minimum wage.

Compounded by every over the counter exchange to go, never a history of tipping here, is now expected. Such as a cup of coffee, loaf of bread or a slice of pizza.


Unfortunately as a result of technology apps to pay the bill with, I don’t think most give it much thought.

Something’s got to give.

PS there was also a differentiation between counter service and table service, that education has vanished along with the premise of tipping on the total of items ordered not the taxed amount.

And then there is post Covid wait staff who has lost much of the training and experience of their predecessors … unfortunately the mechanism to educate them by reflecting on their tip has been watered down as per above.


End result is fewer times eating out and higher quality food at home.


Left with the anwkwardness of ordering a slice of pizza and being prompted for a tip.

I agree, tipping is out of control.

[codecow]

I am habitual and return frequently to the same establishments. I tip obscenely in many cases, especially if I get a lot of freebies.

However, in Spain right now I dialed it back as is appropriate for the locale.

[Dr. Robert]

Originally Posted by AzPaul

It won't affect me because I tip in smiles.

I’m increasing my smiles by 40%


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[Cru Jones]

Considering the relevant tax bracket, I personally think this probably doesn’t, in and of itself, modify tip amounts.

Originally Posted by superdog

On the other hand, it’s only on “claimed” cash tips, which often times are barely claimed anyway.

Good point.

Originally Posted by subtona

Tipping is off the rails.

Also a good point.

[Lol-x]

I never understand why if you go to a restaurant that is expensive you are expected to pay a percentage of your bill as a tip. Or you might want on a special occasion an expensive wine, why should you have to pay a percentage of that as a tip. $10-$20 should be good enough for a tip not 20% of $300...

[codecow]

Originally Posted by MrGoat

I missed adding this on my first comment but, there is places we frequent that have a month lead time on reservations. I get preferred service because every server, bartender and the owner knows me and I know them and I take care of them. Tipping well is one of the reasons the servers all remember me.

I look at it as, what’s $1000+/- in tips over the month if it gets me a reservation the next day that normally takes a month? Or the chef comes out and offers us something incredible they’re just trying out? These things don’t happen to those that don’t treat the servers well.


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This. If you have places you go and you’re a regular and you’re known to take care of the staff then you’re taken care of in return.

Of course I’m American so I have an American attitude about tipping. You have to take the local culture into account.

[omar-rye]

Originally Posted by MrGoat

Any restaurant we frequent gives us expedited reservations and service because we always treat them well.

That’s precisely my beef with the tipping culture. I see it as a form of bribery that is done in exchange for preferential treatment - like faster service, special favours, or skipping the queue.

In a tipping culture, service workers are often motivated to give better treatment to customers who are known or expected to tip more generously. As a result, customers who are unable to tip 20–30% - due to financial hardship or different cultural norms - may receive inferior service or be ignored altogether.

Lastly, tipping favours certain workers (like waitstaff) over others (like cooks or cleaners) who work just as hard to give you the best experience but receive nothing extra.

I went for an oil change the other day, and the guy working on my car noticed a loose heat shield that was bound to get worse and start rattling while driving. When he handed me the keys, he casually mentioned he’d already taken care of it. I grabbed some cash from my car and gave it to him - because when someone goes out of their way and does more than what’s expected, that deserves a tip.

But I wasn’t about to tip him just for doing the oil change properly and on time - that’s what the $150 oil change fee was for. And I’m not trying to buy special treatment either. I don’t want to be favoured over the next guy just because I have extra cash to throw around.

I also don’t get why there’s a tip option on every machine nowadays. I’m buying gelato at a place that doesn’t even have dine-in service - just grab and go. Why would I tip? And who’s even getting that tip? It feels less like appreciation and more like guilt driven begging.

[BLACKHORSE 6]

Originally Posted by subtona

Tipping is off the rails.

Prices in restaurants have increased significantly. Tips are tied to those increases.

Maybe I have been in a bubble but the tip range I have worked off my whole life has been 15/18/20%
It seems in recent times those have risen to 20/25/30% on top of the increased food prices and on top of a significant increase in minimum wage.

Compounded by every over the counter exchange to go, never a history of tipping here, is now expected. Such as a cup of coffee, loaf of bread or a slice of pizza.


Unfortunately as a result of technology apps to pay the bill with, I don’t think most give it much thought.

Something’s got to give.

PS there was also a differentiation between counter service and table service, that education has vanished along with the premise of tipping on the total of items ordered not the taxed amount.

And then there is post Covid wait staff who has lost much of the training and experience of their predecessors … unfortunately the mechanism to educate them by reflecting on their tip has been watered down as per above.


End result is fewer times eating out and higher quality food at home.


Left with the anwkwardness of ordering a slice of pizza and being prompted for a tip.

This.

The only place I tip for counter service is the coffee shop that frequent. The fact that it’s become expected everywhere is crazy to me.

[subtona]

Originally Posted by omar-rye

…


I also don’t get why there’s a tip option on every machine nowadays. I’m buying gelato at a place that doesn’t even have dine-in service - just grab and go. Why would I tip? And who’s even getting that tip? It feels less like appreciation and more like guilt driven begging.

You raise good points , there are automatic experiences that don’t involve employees that prompt for a tip. I also recently received a tip option for something I ordered on line.

I agree who exactly is getting these tips?

Robot service is also becoming more popular…do robots get the same tip percentage?

Originally Posted by BLACKHORSE 6

This.

The only place I tip for counter service is the coffee shop that frequent. The fact that it’s become expected everywhere is crazy to me.

Agree with you here, my local favorite establishments that have had the same staff for years who know what I like and how I like it, makes my experience better… I will often, with pleasure, reflect that in their tip.

Btw the wages of one of those waiters is just shy of 200k per year (maybe more if the cash tips are included). Average meal at the restaurant for 2 is less than 200 with wine.

[codecow]

Originally Posted by omar-rye

That’s precisely my beef with the tipping culture. I see it as a form of bribery that is done in exchange for preferential treatment - like faster service, special favours, or skipping the queue.

It can swing that way, one common one is to “tip” hotel staff with the hopes of getting an upgrade. In that case those folks tip before the service, which is sketchy. If a hotel helps me out for example getting my room early or giving me an upgrade then I will tip them, not before.

As for everything else, people who can’t afford to tip properly based on the local custom can’t afford the service. At least in the US you’re paying part of that employee’s wages so if you can’t pay then don’t go/use those services.

One thing I see frequently in Vegas is people often do not tip the cab line valet. It’s not uncommon for me to hand them a note and they will say, “thank you that makes up for the last few people” or “you need to come to town more” etc… In the US knowing and understanding tipping etiquette is good manners.

[OG1982]

Tipping should always be for excellent service, and not to be expected as a rule. Luckily, tipping in the UK isn't anything like what is expected in the US, but I will always tip if a service provider provides a good experience.

[formuula23]

Tipping went from appreciation to down right extortion, my experience in Europe and the US regarding this has been very different

[brandrea]

My pet peeve with tipping is for take out. I dint know why, but it irks me

[Floorguy]

I always tip in cash, and always tip big!! My wife was a waitress at Tony Roma’s in manhattan in the 80’s… it’s not as easy as some people think!! So I tip good,,Allways more than 20%,,, and if they are really nice and pleasant,,,, well let’s just say,,, that I’ve put a big smile on there face when we left!! And NO! I’m am not rich by any means,, just an old retired “floorguy” that knows what it’s like to work for tips!!

[1st amg]

Originally Posted by brandrea

My pet peeve with tipping is for take out. I dint know why, but it irks me

I agree, picking up a box of chicken at Popeyes, they ask for a tip. Drives me crazy. I refuse to tip at those fast food counter restaurants.
I also think that tipping usually starts at 15%. Now, most machines will start the tip percentage at 20, which also irks me. So, I chose the dollar amount for tipping and rounded it off to around 15. Maybe I am old school, but here in Canada, the minimum wage is $17/hr plus tips. I think that most servers make substantially more money than a physical labourer on a construction site who works long hours, rain or shine, hot or cold.

[brandrea]

Originally Posted by 1st amg

I agree, picking up a box of chicken at Popeyes, they ask for a tip. Drives me crazy. I refuse to tip at those fast food counter restaurants.
I also think that tipping usually starts at 15%. Now, most machines will start the tip percentage at 20, which also irks me. So, I chose the dollar amount for tipping and rounded it off to around 15. Maybe I am old school, but here in Canada, the minimum wage is $17/hr plus tips. I think that most servers make substantially more money than a physical labourer on a construction site who works long hours, rain or shine, hot or cold.

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[1William]

I think the best explanation of tipping is in the movie Reservoir Dogs. Watch it and it will expand your your understanding of the process. I resent tipping and see it as a way to subsidize restaurant owners who should be paying the staff enough money to do the job they were hired for. It is a form of extortion and impacts both service and costs significantly. Yes, I still tip because it is expected and the ramifications of not, would impact negatively in many ways.

[Maleg]

Originally Posted by MrGoat

I missed adding this on my first comment but, there is places we frequent that have a month lead time on reservations. I get preferred service because every server, bartender and the owner knows me and I know them and I take care of them. Tipping well is one of the reasons the servers all remember me.

I look at it as, what’s $1000+/- in tips over the month if it gets me a reservation the next day that normally takes a month? Or the chef comes out and offers us something incredible they’re just trying out? These things don’t happen to those that don’t treat the servers well.


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If you are paying $1000 in tips you are spending much more on meals. They aren't giving you preferential treatment because you tip more, they are giving you VIP treatment because you spend more. If you did the same at your AD you'd be swimming in SS Daytona's.

Originally Posted by omar-rye

That’s precisely my beef with the tipping culture. I see it as a form of bribery that is done in exchange for preferential treatment - like faster service, special favours, or skipping the queue.

In a tipping culture, service workers are often motivated to give better treatment to customers who are known or expected to tip more generously. As a result, customers who are unable to tip 20–30% - due to financial hardship or different cultural norms - may receive inferior service or be ignored altogether.

Lastly, tipping favours certain workers (like waitstaff) over others (like cooks or cleaners) who work just as hard to give you the best experience but receive nothing extra.

I went for an oil change the other day, and the guy working on my car noticed a loose heat shield that was bound to get worse and start rattling while driving. When he handed me the keys, he casually mentioned he’d already taken care of it. I grabbed some cash from my car and gave it to him - because when someone goes out of their way and does more than what’s expected, that deserves a tip.

But I wasn’t about to tip him just for doing the oil change properly and on time - that’s what the $150 oil change fee was for. And I’m not trying to buy special treatment either. I don’t want to be favoured over the next guy just because I have extra cash to throw around.

I also don’t get why there’s a tip option on every machine nowadays. I’m buying gelato at a place that doesn’t even have dine-in service - just grab and go. Why would I tip? And who’s even getting that tip? It feels less like appreciation and more like guilt driven begging.

Agree. Tipping was supposed to be for service staff that were underpaid because their income was based on performance based service tips. Now, people who have a normal hourly wage expect to be tipped for simply being present when you make a purchase.

As to the OP, the tax policy doesn't affect my approach to gratuities. Inflation has driven up prices across the board and the cash value of my 20-30% tip has risen proportionately. The fact that the servers get a $25,000 exemption seems unfair to people who work just as hard and don't get the first $25K tax free. But congress needed a sound bite and they cut servers some slack to get it.

[MrGoat]

Originally Posted by Maleg

If you are paying $1000 in tips you are spending much more on meals. They aren't giving you preferential treatment because you tip more, they are giving you VIP treatment because you spend more. If you did the same at your AD you'd be swimming in SS Daytona's.



Agree. Tipping was supposed to be for service staff that were underpaid because their income was based on performance based service tips. Now, people who have a normal hourly wage expect to be tipped for simply being present when you make a purchase.

As to the OP, the tax policy doesn't affect my approach to gratuities. Inflation has driven up prices across the board and the cash value of my 20-30% tip has risen proportionately. The fact that the servers get a $25,000 exemption seems unfair to people who work just as hard and don't get the first $25K tax free. But congress needed a sound bite and they cut servers some slack to get it.

5-6 meals $300 on average, then another 10-15 under $300. Usually tip 40-50% at places we frequent. Adds up quick.

The thing is, if the AD treated me like the places we frequent I’d probably be interested in giving them my money.


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