Tipping Etiquette

I found this on a search engine:

You need to file IRS Form 8027 at the end of each year. It summarizes the restaurants total sales, charged sales, charged tips and total reported tips. So long as tipping is customary in your restaurant, food and beverages are served, and more than ten employees are normally employed, then you must submit the "Employers Annual Information Return of Tip Income and Allocated Tips" on an annual basis (http://www.irs.gov/pub/irs-pdf/f8027.pdf).

Now here is where it gets "dicey". This report is organized in such a way as to highlight any shortfall of reported tips below 8% of gross receipts from food and beverage sales. This line item is like a "flashing red light" to the IRS indicating that your employees may not be reporting all their tips. In fact, if your total reported tips are less than 8% of total food and beverage sales, then you must allocate additional tip income to the W2 of every tipped employee that reported less than 8% of their respective sales, so that their total reported income reflects this minimum 8% allocation.

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Walter Hinteler wrote:

So, why do you only tip the waiter-service and not for the kitchen?
(When I pay my bill here, a "tip" [=service charge] is included for everyone.)

Generally because the cooks are paid more per hour than the servers are.

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Well, you see, I - as a customer - don't pay their wages, that's what their employer does.

I give a tip for a good service and/or for something really good cooked.

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cicerone imposter wrote:

Chai Tea, But isn't it also true that most tips will be in cash, so the amount of tips collected by cc will be an amount that they are required to claim on their tax forms anyway?

hmm...I guess I'm not understanding you

If the invoices for the night equaled $500, assuming a 20% tip rate...the waiter would collect $100 cash, but would only have to declare $25 as income, leaving them with $75.00 cash, tax free.

If the same $100 in tips were all on a credit card, they would have to declare the entire $100 as income.

If the tips were half and half, then they'd only have to declare $12.50 of their $50 cash tips, leaving $37.50 tax free, and have to declare the other $50 in cc tips.

Or are you saying something completely different?

At least that's how I think it goes...cypher?

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I wonder how much this guy tips?

Mon Oct 30, 10:44 PM ET

CHATTANOOGA, Tennessee - Japanese eating champion Takeru Kobayashi won his third straight Krystal hamburger-eating contest, setting a new world record in the process. Kobayashi ate 97 of the small, square hamburgers in eight minutes on Saturday.

That beat the previous record of 69 burgers, which he set at the first Krystal contest in 2004.

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In the aforementioned situation where the waitress was exceptional and the food was lousy I wrote a check for the exact amount and on the way out the door I slipped my phone number into the waitresses's pocket.

She hasn't called me yet.

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Chai Tea wrote:

cicerone imposter wrote:
Chai Tea, But isn't it also true that most tips will be in cash, so the amount of tips collected by cc will be an amount that they are required to claim on their tax forms anyway?

hmm...I guess I'm not understanding you

If the invoices for the night equaled $500, assuming a 20% tip rate...the waiter would collect $100 cash, but would only have to declare $25 as income, leaving them with $75.00 cash, tax free.

If the same $100 in tips were all on a credit card, they would have to declare the entire $100 as income.

sorry ci, I was typing while you posted the above.

If the tips were half and half, then they'd only have to declare $12.50 of their $50 cash tips, leaving $37.50 tax free, and have to declare the other $50 in cc tips.

Or are you saying something completely different?

At least that's how I think it goes...cypher?

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Chai Tea, My apologies for my poor communication in my attempt to ask what is answered in my above post on IRS requirements on tips. If the gross is $500 in sales, the restaurant is required to report $40 in tips (8%).

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cicerone imposter wrote:

Chai Tea, My apologies for my poor communication in my attempt to ask what is answered in my above post on IRS requirements on tips. If the gross is $500 in sales, the restaurant is required to report $40 in tips (8%).

DANG!!!

I don't know what's wrong with this #*@*$^#))!!! computer....Below my quote I was saying to you that I'm sorry, I was typing while you where posting the above.

for some reason it didn't post.

You're explanation makes perfect sense, is what I was trying to get across.

whew...

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Walter Hinteler wrote:

Well, you see, I - as a customer - don't pay their wages, that's what their employer does.

Sure you do... just not directly.

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jpinM is correct; without customers to pay for the food, they would go bankrupt like 80 percent of all new restaurant openings.

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jpinMilwaukee wrote:

Sure you do... just not directly.

Well, correct. As well as the salaries of the civil servants, hundreds of journalists, professores etc.

What I meant is that I don't pay them directly.

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Walter Hinteler wrote:

Well, you see, I - as a customer - don't pay their wages, that's what their employer does.

As it is, with the employer having to pay the rest of the hourly minimum wage out of his pocket if nobody is tipping the employee, I'm tipping the employer before I'm actually tipping the employee.

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i would rather tip for take-out than give it to a homeless person sitting on the sidewalk with hand out-stretched...

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I dunno, those people behind the counter have jobs... the homeless usually have little or no spending money, with torn clothes, and carry everything they own in a bag....

http://i85.photobucket.com/albums/k51/cjhsa/homeless.jpg

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oh that poor girl

look, she hasn't eaten in so long her clothes are just hanging off her.

tsk.

there but for the grace of god....

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I don't think that is the sort of tip she is looking for... if you know what I mean...

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I'm looking at those 2 woman that are approaching her on the left side of the picture....

In about 2 steps Carol is going to say to say to her friend Donna out of the side of her mouth....

"oh jesus, wouldja just look at this one...."

"oh, I know, what a putana.....god...."

They'll have plenty more to say after they pass and turn around to look and get a load of her ass crack.

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If you look closely, you can see where I stuck my $20....

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Region Philbis wrote:

i would rather tip for take-out than give it to a homeless person sitting on the sidewalk with hand out-stretched...

Not me! I'd help the homeless person first. Isn't he a child of God?

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Tipping Etiquette

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