Stop Tipping

[Sunset]

Does anyome tip the mechanic? He provides a service to keep your car running...you could do this yourself and avoid any gratuitous expectation.. Do you tip the bellboy who lugs the luggage? Do you tip the nurse who gives you a flu shot? I dunno I tip at the restaurant unless the service was terrible, at the hair stylist unless the haircut was bad after setting expectations and I give the UPS and mailman gifts for xmas. Other than that I dont think I tip much. I figure nobody accepts the job offer thinking tips are guarenteed and im just one fine example. Btw there are other ways to show gratuity without providing financial means. A sincere thank you works in a lot of situations.

I don't get how I could tip the UPS person, as it's a different one every time, besides then I'd have to tip my electric meter reader person who comes by every month or two to read the meter in the backyard.

I was thinking about tipping the people who walk their dog past my property and scoop the poop.

 

[skipro33]

So, waitstaff at restaurants are paid below minimum wage and it's legal. Customers of the restaurants can voluntarily provide a 'tip' to the staff that served them. This tip is in no way associated with the business and is in no way offset by their product. Why can't a tip be considered a charitable donation then? If I give money to someone who is below the poverty line, then it's charity and I can write it off on my taxes, so how is this any different?

I did try to research on Google to see if tipping in areas that pay less than minimum wage could be considered a charitable donation, but came up with nothing.

 

[samclem]

So, waitstaff at restaurants are paid below minimum wage and it's legal. Customers of the restaurants can voluntarily provide a 'tip' to the staff that served them. This tip is in no way associated with the business and is in no way offset by their product.

In my experience, this is not the way it works. Servers are paid a different minimum (lower) wage by the employer, and then they are required (usually poorly enforced) to report al their tips to the employer. According to the law, if, after tips, they aren't making the regular federal minimum wage then the employer must make up the difference.


In practice, if the server isn't regularly reporting that they earn the federal min wage after their tips, there's a good chance they'll be fired. Restaurant owners have a good idea what their servers are tipped, and if a server is very sub-par and not getting the normal tips earned by other servers, then the employer wants them gone: they are likely treating customers poorly and also the employer doesn't want to have to pay them the "make up" pay to bring them to the "normal" minimum wage.

If I give money to someone who is below the poverty line, then it's charity and I can write it off on my taxes, so how is this any different?

Of course, that is not true. You can't write off handouts to panhandlers.


Also, this payment to the server is for service that you requested (by sitting at the table). The amount may be voluntary, but the relationship is pretty clear.

 

[youbet]

If I give money to someone who is below the poverty line, then it's charity and I can write it off on my taxes

I believe that is incorrect. I think the receiving party must be a qualified charitable organization under IRS guidelines. There are some very knowledgeable folks on the forum who can probably answer this assuredly.

Edit: Just noticed others have already commented. Sorry for the late jump-in.

 

[skipro33]

Thanks for the clarification. Then perhaps the tip could be considered a gift and therefore not taxable?

During the holiday season, I will regularly over tip with cash with a small note on the bill of Merry Christmas. Would any of that be considered a gift?

 

[TwoByFour]

I like helping people out who are working hard and not getting paid much for it, so tipping does not bother me in the least.

A woman comes over and helps DW in the garden with weeding and other things hard on my wife. She charged $15/hour and we told her she is not charging what she is worth and upped her pay.

 

[youbet]

Thanks for the clarification. Then perhaps the tip could be considered a gift and therefore not taxable?

During the holiday season, I will regularly over tip with cash with a small note on the bill of Merry Christmas. Would any of that be considered a gift?

Probably not since you would not give it unless services were rendered to you. Just as Holiday bonuses at work were added to our W2's, your so-called "over tip" would be considered income to the server.

It sounds like you are highly over-thinking this. Just give the tip that you feel is appropriate to show whatever level of appreciation you desire. There is no tax liability to you whatsoever. The receiver will take care of paying any taxes (such as income tax) they deem appropriate.

Note: I'm a retired factory guy, not a CPA (obviously!).

 

[Bestwifeever]

I've never met Destiny. What restaurant does she work at?

She waited on me at the Karma Cafe last year. I tipped her big time!

 

[ShokWaveRider]

10% is more than enough, especially with respect to the cost of a decent meal for 2 in today's day and age.

 

[folivier]

How about this: if you're a senior citizen then rather than asking for a discount, just don't tip. Of course you're then expecting the restaurant to pass that on to the server.
Sure would make it easy for us ole' folks.

 

[ls99]

In post 52 I wondered why the tip is calculated on the price of goods, when supposedly the tip is for service rendered. Another words payment for labor. Seems so far no answer, I know I dont have one. Further, tipping seems to be a generally accepted boondoggle.

Just find it bizzare that most of the comments discuss service quality, no one seems to note that the tip is based on the food's price.



By the way, is waiting tables supposed to be skilled labor?

 

[Chuckanut]

If I give money to someone who is below the poverty line, then it's charity and I can write it off on my taxes, so how is this any different?

Doesn't it have to be a legally qualified charity?

Besides, you are receiving value for what you contributed, which you must deduct from your 'contribution'. So that would mean you are a BIG TIPPER!!

I would like to be a fly on the wall as you explain this all to an IRS agent auditing your return.


Despite the joking above, I would love to see tipping eliminated and employers pay their workers a market wage for the value the employer receives. Why the customer should be involved in the employee's pay rate is beyond me.

 

[RobbieB]

I always tip heavy during the holidays!

 

[youbet]

10% is more than enough, especially with respect to the cost of a decent meal for 2 in today's day and age.

Well, "it depends."

I guess it's my turn (I'm making it my turn) to share anecdotal stories illustrating this.......

I have breakfast most Friday mornings with some other retired geezer guys from Mega. We're all old, really old, farts and getting out does us good.

The senior menu has a selection of decent, smaller portion breakfasts for $6.99 which includes coffee with refills. Our regular server takes great care of us (usually 5 - 6 guys) and we're usually there 1.0 - 1.5 hours BSing up a storm. We each kick in $10 so on an approx $42 check we leave a $18 tip. That's about a 43% tip! And our server, a mature gal we've had for a long time, acknowledges that for about the same effort serving a family of 4, she might only get $5. But we like her, she knows how each of us likes our food cooked and served and our cups are always full. We all feel great being "big tippers" when it only costs $3 a man to be generous.

Last Friday, in addition to the normal $60 cash to cover a $42 check, we gave her an extra $120 ($20 each) for the holidays.

OTOH, when I'm out with DW at an upscale place, the server would have to walk on water for me to tip more than 20%. Leaving $20 - $25 behind on the table just feels like enough.

The absolute amounts come into play as well as percentages.

 

[steelyman]

When I got the paper delivered I used to give a $25 supermarket gift card as a tip to the carrier (as well as a bunch of others). Just a suggestion.

We got whacked hard by snow over the weekend (all’s normal now). Once all the snow was over, I looked out and saw the Sunday NYT, safely packed away from the snow/wet, laying there in its blue wrapper. Incredible.

My Courageous Carrier has an Amazon gift card heading their way.

 

[Teacher Terry]

I tip my groomer every time but that’s because her prices are cheaper than the one I used in the past and she does a better job. I tip my cleaners at Xmas. I stopped tipping my hair dresser because he kept raising the rates and is expensive now. He works for himself. We have been to Italy twice, Norway’ once and Poland twice. Service was much better in the US. I am surprised at the number of people that don’t leave a decent tip.

 

[MRG]

In post 52 I wondered why the tip is calculated on the price of goods, when supposedly the tip is for service rendered. Another words payment for labor. Seems so far no answer, I know I dont have one. Further, tipping seems to be a generally accepted boondoggle.

Just find it bizzare that most of the comments discuss service quality, no one seems to note that the tip is based on the food's price.



By the way, is waiting tables supposed to be skilled labor?

Is it skilled? Never waited tables so...? I do know that I appreciate great service and servers remember those who tip well. I remember a trip to SA where we didn't have reservations and the only way we got a table was the server remembered us from a prior meal.

When DW and I go to our favorite Mexican place the margaritas are being prepared when we sit down. It's worth it to me.

 

[Teacher Terry]

When a restaurant is busy servers are running around and have to keep everything straight. It can be a demanding job. Interesting too that many casino workers reported that Asians don’t usually tip. I am guessing that they are just carrying on a cultural habit.

 

[MichaelB]

Well, "it depends."

I guess it's my turn (I'm making it my turn) to share anecdotal stories illustrating this.......

I have breakfast most Friday mornings with some other retired geezer guys from Mega. We're all old, really old, farts and getting out does us good.

The senior menu has a selection of decent, smaller portion breakfasts for $6.99 which includes coffee with refills. Our regular server takes great care of us (usually 5 - 6 guys) and we're usually there 1.0 - 1.5 hours BSing up a storm. We each kick in $10 so on an approx $42 check we leave a $18 tip. That's about a 43% tip! And our server, a mature gal we've had for a long time, acknowledges that for about the same effort serving a family of 4, she might only get $5. But we like her, she knows how each of us likes our food cooked and served and our cups are always full. We all feel great being "big tippers" when it only costs $3 a man to be generous.

Last Friday, in addition to the normal $60 cash to cover a $42 check, we gave her an extra $120 ($20 each) for the holidays.

OTOH, when I'm out with DW at an upscale place, the server would have to walk on water for me to tip more than 20%. Leaving $20 - $25 behind on the table just feels like enough.

The absolute amounts come into play as well as percentages.

That’s a great example of tipping and a very nice gesture as well.

 

[braumeister]

I always tip heavy during the holidays!

Me too. During the month of December I typically double my normally generous tip. Those folks have presents to buy and mouths to feed.

SRF had a BOGO sale recently and I've been enjoying the American Wagyu NY strip steaks I got, and I realize that the folks I'm tipping most likely won't be able to enjoy beef that good. But I can help where I can.

My favorite tip, which I do all year long whenever appropriate, is to find a very hard working person who is clearly having a rough day. I'll include an extra $20, maybe a couple of them, and fold them up inside the regular tip I leave. Then I get out of the place as quickly as I can. This sort of thing is why I always like to have plenty of cash on me.

Leaving an extra $20 to a server in a place like Denny's or similar doesn't mean that much to me but can definitely make someone's day.

 

[MRG]

Me too. During the month of December I typically double my normally generous tip. Those folks have presents to buy and mouths to feed.

SRF had a BOGO sale recently and I've been enjoying the American Wagyu NY strip steaks I got, and I realize that the folks I'm tipping most likely won't be able to enjoy beef that good. But I can help where I can.

My favorite tip, which I do all year long whenever appropriate, is to find a very hard working person who is clearly having a rough day. I'll include an extra $20, maybe a couple of them, and fold them up inside the regular tip I leave. Then I get out of the place as quickly as I can. This sort of thing is why I always like to have plenty of cash on me.

Leaving an extra $20 to a server in a place like Denny's or similar doesn't mean that much to me but can definitely make someone's day.

+20

Sometimes it makes a big difference in someone else's life. I was introduced to this idea by a very special person years ago. I later realized he had done the same thing for me! It is special to be able to help folks who are busting their butts to make a living.

 

[Corporateburnout]

+20

Sometimes it makes a big difference in someone else's life. I was introduced to this idea by a very special person years ago. I later realized he had done the same thing for me! It is special to be able to help folks who are busting their butts to make a living.

Ditto.

For most of us on this forum an extra $20 tip won't make a difference but for some lower wage earners it makes a big difference.

A server in one of the restaurants we frequent lost her husband earlier this year in a car accident leaving her to support 3 young kids with the help of her mom while working 10 hour shifts 6 days a week. Last week DW gave her a holiday card with a $100 in cash. Just the look of appreciation on her face made our day.

 

[Bestwifeever]

If I felt strongly that the tipping system was wrong as some people here seem to, I wouldn’t tip. I wonder why those people do? No one is putting a gun to your head. Go ahead, be brave! Say no to tipping!

 

[FreeBear]

Ditto.

For most of us on this forum an extra $20 tip won't make a difference but for some lower wage earners it makes a big difference.

A server in one of the restaurants we frequent lost her husband earlier this year in a car accident leaving her to support 3 young kids with the help of her mom while working 10 hour shifts 6 days a week. Last week DW gave her a holiday card with a $100 in cash. Just the look of appreciation on her face made our day.

+1



This and other comments from generous tippers and "extra" holiday tippers made my day. Was getting tired of all the hand-wringing justifications fo why tipping is "bad". For me, eating out is an amazing luxury. I hate cooking and cleaning! I leave typically a 20% tip based on total check, after tax. I'll give 25% if the service is amazing and /or I'm a regular. At worse, I'll give just 15%, for basic service.


Will challenge my cheapness this holiday by carrying 20's. Will try to get my cheap self to Blow Some Holiday Dough! Thanks again!

 

[tmm99]

So, waitstaff at restaurants are paid below minimum wage

Not always. In some states, they're paid the full minimum wage (California, Oregon, Washington, Montana, Minnesota). For the rest of the states, the pay varies widely.

https://www.dol.gov/whd/state/tipped.htm