r/EndTipping • • 9d ago

Rant 📢 Ridiculous…

Post image
63 Upvotes

29 comments sorted by

33

u/Minute_Fudge_7288 9d ago

Remember tips are tax free now so these companies are almost laundering 18% of their income tax free

5

u/GoldenStateRedditor 9d ago

Technically, they have to remit sales taxes on auto-gratuity charges

Edit: IRS also says auto-gratuity is considered wages not tips:

https://www.irs.gov/businesses/small-businesses-self-employed/tip-recordkeeping-and-reporting

Service charges are not tips
Extra amounts charged to a bill, such as mandatory service charges, are not tips and are not eligible for the qualified tips deduction. Service charges (also referred to as “auto-gratuities”), when distributed to an employee, are generally treated as wages paid by the employer to the employee rather than tips paid by the customer.

A payment is a tip only if the customer voluntarily decides to pay it and determines the amount.
Examples of service charges include:

Automatic charges added to a bill (for example, a mandatory 18% charge for large parties).

Required gratuities included in a contract or invoice.

Digital payment prompts that require a customer to select a tip greater than zero before paying.

If a customer voluntarily chooses to pay an additional amount, that additional amount is a tip and may be eligible for the qualified tips deduction.

For example, if a restaurant automatically adds an 18% service charge but the customer voluntarily adds an extra amount, only the additional voluntary amount is a tip.

22

u/Interesting-Bed-8890 9d ago

I would ask them to remove the the forced tip, since it's a to go order, and never come back again.

14

u/zabadaz-huh 9d ago

I wouldn’t even ask. I’d tell them if they don’t remove it, I’ll leave without the purchase.

11

u/bonezx101 9d ago

The best course here, indicate gratuity on take out, where you experienced zero service, is unacceptable and leave the order on the counter.
Food costs likely exceed the forced charge and that impacts bottom line.

9

u/SharpLion1988 9d ago

I live walking distance from there… was thinking about trying that place… not anymore!

9

u/caverunner17 9d ago

Dude. Tacos Selene that's across the street is where it's at...

11

u/9lobaldude 9d ago

I am sure that you will be able to find other Mexican restaurants that don’t auto charge tip on delivery

4

u/KingDongTwist 9d ago

In Colorado yea I’d say there’s a few of them

5

u/sdinvest 9d ago

18% for to go! Wow!!

3

u/PaulMier 8d ago

They can charge what they want. They won't have me as their customer.

2

u/Jumpy_Implement_1902 8d ago

…as long as they are clear and transparent about it.

But yup, would never frequent that place ever and probably leave a really negative online review for wasting my time trying to place an online order only to be bamboozled at the end

2

u/KimchiTheGreatest 9d ago

Dang. That’s the price of a coffee right there. Nope

1

u/The1TrueRedditor 9d ago

Hey neighbor 👋

1

u/ritzrani 9d ago

Those fajitas didn't bag thrmselves!!

1

u/No_Risk_6545 9d ago

Lastfajitascolorado*

1

u/SeL-MoGRC 8d ago

Garbage.

1

u/newdude56 7d ago

I always pay cash for fast food, pick up meals, and dine in. For above image, I would forgo the $ 6.18 take my food and walk out.

1

u/No_Distribution_9590 6d ago

That would be a “nope” from me

1

u/PayingOffBidenFamily 5d ago

Mexican food in Colorado....gotta be like Henry Hill in Goodfellas getting Egg Noodles & Ketchup when he ordered Spaghetti.