"Mandatory" Tipping

[2014olympicgold]

Except their isn't any cross hairs on her right?!

I don't know if this is a comment on getting back together with her or ....the other thing...

But let the record show, neither.

[dooley89]

What I dislike about the industry in general is that kitchen staff get about 1% of what that server gets if the restaurant has a tip-out system.

I tip 15-20% almost everywhere I go.

[Rylant]

What I dislike about the industry in general is that kitchen staff get about 1% of what that server gets if the restaurant has a tip-out system.

I tip 15-20% almost everywhere I go.

The kitchen staff also get paid a decent hourly rate. I know dishwashers who make $24 dollars an hour and $300 a week in tip pool. Sure, it's a shitty job, but it can pay well. I know lead cooks who make $30 an hour plus tip pool. Servers all make minimum wage generally.

Rylant

[The Comish]

[rataylor22]

https://nationalpost.com/news/the-10...ping-in-canada

Especially topical.

For the servers aren’t paid well crowd, “His data showed that when tips are accounted for, the average Canadian server is making about $30 an hour — with a select few making the meteoric wages enjoyed by ‘Kate.‘“

I bolded the important word of the quote.

[Atomic Wedgy]

Back in the late 90s I lived with a lunch of friends in London, England. One of the girls worked at the Hard Rock Cafe. She took home a lot of money. People were tipping her in pounds. It was insane how much money she actually brought home. It would not be unusal for it to be 300 quid, just in her tips. Back then, in most other places, you would not expect to be tipped at all. A lot of Americans go to the Hard Rock Cafe in London and a lot of them tip.

[2014olympicgold]

Tips aren't usually included in their taxes too.

It should be, but it isn't.

[dooley89]

The kitchen staff also get paid a decent hourly rate. I know dishwashers who make $24 dollars an hour and $300 a week in tip pool. Sure, it's a shitty job, but it can pay well. I know lead cooks who make $30 an hour plus tip pool. Servers all make minimum wage generally.

Rylant

Shit, not around here that's for sure!
Maybe high-end restaurants?

I'm talking about chain restaurants where servers CAN make $100 and still complain while guys cooking wings at boston pizza make $15/hour or something

[PenguinHunter]

Tips aren't usually included in their taxes too.

It should be, but it isn't.

I have heard rumours that the government is going to start forcing restaurants to tally tips and include it on the employee's T4.

[2014olympicgold]

I have heard rumours that the government is going to start forcing restaurants to tally tips and include it on the employee's T4.

If the employee is tipped $1,000 on the year, the company would be taxed on that too I would think. It's mutually beneficial to lie on what the tips were. Only time I would see it not being lied, is the tips gained through debit/credit card transactions.

[PenguinHunter]

If the employee is tipped $1,000 on the year, the company would be taxed on that too I would think. It's mutually beneficial to lie on what the tips were. Only time I would see it not being lied, is the tips gained through debit/credit card transactions.

The only party the company would be taxed on would be if they were keeping some of the tip for themselves.

Even if they have to report it as income, if it gets distributed to the employees, then they get to report it as expenses. So as long as they pay out the whole amount of the tip received, they would not be paying any tax on it.

Tip Received $1,000
Tip paid out ($1,000)

Net income 0

Therefore no tax effect to the restaurant.

[2014olympicgold]

The only party the company would be taxed on would be if they were keeping some of the tip for themselves.

Even if they have to report it as income, if it gets distributed to the employees, then they get to report it as expenses. So as long as they pay out the whole amount of the tip received, they would not be paying any tax on it.

Tip Received $1,000
Tip paid out ($1,000)

Net income 0

Therefore no tax effect to the restaurant.

Don't they get taxed on employee wage too? I have 0 experience on this I will admit.

[PenguinHunter]

Don't they get taxed on employee wage too? I have 0 experience on this I will admit.

Oh you are referring to health and education tax?. I guess if it is large enough company that wages are over the threshold there would be some of that yes.

[Rylant]

For the longest time, tips were very difficult for the government to track, and very easy for servers to lie about. As we move further and further into online transactions of debit and credit and further away from cash transactions, it is getting easier for the CRA to track and audit. When I was a server, I didn't declare my tips 100 percent accurately, but I did declare very close to what I was actually receiving. I know several servers who have been audited and it is not pretty if they don't declare at least close to accurately. I was audited myself, and because I declared close enough to what I actually made, I was able to get through the audit relatively painlessly.

Also, because servers are making a fairly decent hourly rate now in Canada as the rate has increased lately, this is less of a concern. When I was serving, I was making $6.30 an hour for a long time. The majority of my take home was tips. That makes like 12 or 13 thousand dollars a year, and if you claim like 1 or 2 thousand in tips (Like most servers I know did), that means your salary was like 15k a year. Good luck getting a house or car with that kind of declaration. Because I claimed 15k a year in wage and 20k a year in tips (this was probably 15 years ago), I was able to have some decent credit to get the things I wanted.

Rylant

[lucafen4]

https://nationalpost.com/news/the-10...ping-in-canada

Especially topical.

For the servers aren’t paid well crowd, “His data showed that when tips are accounted for, the average Canadian server is making about $30 an hour — with a select few making the meteoric wages enjoyed by ‘Kate.‘“

I bolded the important word of the quote.

yes, very topical - since the OP included a link to this article