Quote:
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.
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“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.