i mean my manager says because the credit card company will do an audit and we will be taxed from our pay checks..i think thats gay. i make 5.15 an hour and rely on tips and when most people pay with credit card and are willing to pay a tip off the card then why not..i mean i get cash from people as tips so why not credit cards.. what is the difference?
2006-06-07 09:01:35 · 12 answers · asked by BRAD I 1 in Dining Out ➔ United States ➔ Dallas
This rule is to protect YOU. Suppose a customer tells you to add $5 for yourself, and then forgets? Later, this customer will accuse you of theft! If the tip is in the customer's own writing, then there can be no suspicion of dishonesty.
2006-06-07 09:07:27 · answer #1 · answered by kill_yr_television 7 · 2⤊ 0⤋
First off you are making regular minimum wage, thus I would assume your manager does not want to deal with the hassles of tip tracking and reporting. If you were making the waiter wage of 2.13 an hour, then this would be a different story.
Basically it sounds like your manager/store owner is treating employees as regular wage earners NOT TIP earners. and Thus he wants no record of tips on the books, which a CC receipt would provide.
Tip earners fall under a whole different set of rules of which Dixi Is correct on them but wow that was hard to understand.
Tip Earners
These people are taxed on making 10% of their food total. If you had $100 in food sales, the gov' thinks you made $10 in tips. Unless proof shows you made more than that. The only proof of tips is on CC receipts. So cash tips are better for the waiter as they are untrackabe. Say you were actually tipped $15 on that night, but it was all cash, the Gov' still taxes you on $10. But if it was all CC receipt tips, then you will be taxed on $15.
Tip Pools make this even more complex, as a portion of your tips are then also given to other employees at the restaurant. For example Bar staff are often given a cut of every else's tips, and often bus staff as well. The thought behind this is without these people's help you would not have been able to provide the service to the customer, so these people also deserve some of the tip. (And the restaurant need only pay them the 2.13 wage instead of minimum wage since they are getting tips)
2006-06-11 23:54:49 · answer #2 · answered by Anonymous · 0⤊ 0⤋
As people stated earlier, YOU cannot put a tip onto a credit card receipt, even with the permission of the card owner. Usually, the customer adds the tip amount on the receipt after they receive the credit slip to sign.
I think what your boss means is that tips paid by credit card by law has to be reported by your boss as part of your INCOME which will be taxed. Also, in many restaurants, tips are pooled (which I do not think is fair), and shared amongst all waitstaff, etc.
If you get cash as a tip, you basically pocket the money TAX FREE (though technically this is supposed to be reported as income as well).
What I do when dining in a restaurant is to pay my bill by credit card, DO NOT LEAVE A TIP VIA CREDIT CARD (it is also a way for me to know if any fraudulent amount was added to my charge card also), but I will tip by cash -- so the server can get the money.
2006-06-07 10:37:48 · answer #3 · answered by LewAR26502 4 · 0⤊ 0⤋
I don't think a credit card company can do an audit. I think technically the owner has the right to make this decision, since he is the one with the contract with the cc company. Where I used to work the waiters did have to pay the restaurant 5% of cc tips, some but I think not all of which was commission for the cc company.
2006-06-07 09:11:41 · answer #4 · answered by Goddess of Grammar 7 · 0⤊ 0⤋
Hmmm, that sounds incorrect on a gaggle of degrees. in the starting up, i visit work out having to help tip the bus man or woman, or the bartender, in spite of the undeniable fact that that's as far as tip pooling ought to ought to flow. i'm not a waitress, yet as a shopper, I have discovered that some wait artwork force at the instantaneous are not properly worth a lot for concepts, and some are properly worth more effective than the same old tip. i'd hate to imagine I requested for an outstanding waiter/waitress and they had to percentage the top i theory THEY deserved! also, i imagine it truly is baloney that your mastercard concepts ought to flow in the route of assisting to purchase plants and such. If I pay a tip on a mastercard, i'd favor to be reassured that the money I gave helps you with your residing prices. If the eating position is so sensible, then their costs should be set to preserve those prices. To take you money is like stealing. i do not comprehend if you may do some thing about getting you money decrease back, yet i'd imagine about going some position else to artwork.
2016-11-14 08:06:54 · answer #5 · answered by sorensen 4 · 0⤊ 0⤋
When we have tips put on credit cards this means that we HAVE to claim them no matter what because there is record of them. He is right, you will be taxed out of your paycheck for them, because he has to claim them since they are on record. Just like at the end of the night where I work. I have my cash tips and then my credit card receipt tips. I have to no matter what, claim 10 percent of my sales for the night so say if I sell $853. worth of food that night I have to claim $85.30 but if my credit card slips say that I made $115. In tips then I have to claim all of that since there is record of it, and I will be taxed on that amount from what I make hourly. I dont think it has anything to do with the credit card company doing an audit per say...but you would be taxed on the tips you make from your credit cards out of your hourly pay. I have worked at some restaurants where a certain percentage of your credit card tips go to the restaurant to tip out the bar, bussers and hostess if they tip them out. Maybe it's just something they prefer not to deal with at that establishment. If I were you I'd look elsewhere for a job that you can get both cash and credit card tips so you don't miss out, GL!
2006-06-08 06:35:18 · answer #6 · answered by dixi 4 · 0⤊ 0⤋
When I'm at a restaurant and pay with my card, I add the tip to the receipt and it's taken off my card. There's no reason why you shouldn't be able to do this. That's why the receipts are printed that way. If he insists that you don't do it, maybe he's trying to hide something from the auditors.
2006-06-07 09:40:15 · answer #7 · answered by Anonymous · 0⤊ 0⤋
It is considered fraud for anyone to write on the slip other than the card-holder. If the guest insists that you write it in, make sure you do so in the presence of the guest. Your manager is just protecting himself/herself from liability, and the establishment from being sued.
2006-06-07 09:13:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋
I quit my serving job yesterday, I had a ghetto tip me 58 cents and another get an attitude, I told him if he didnt want to tip dont eat out go to churchs chicken or kfc.... so i told them it was my last night because serving industry sucks when you have to wait on nigs
2006-06-07 12:39:30 · answer #9 · answered by Iden x 2 · 0⤊ 0⤋
No reason for you not to put tips on credit cards.
That is costing you money that you deserve.
What it does mean is more work for your boss. Go find another place to work. Your boss is an ***%ole for not allowing it.
2006-06-07 09:06:17 · answer #10 · answered by Anonymous · 0⤊ 0⤋