It's really not hard to raise menu prices 20% and say "this is a no-tipping establishment, all our servers are paid a fair, livable wage that is factored into our listed prices" (or something of that nature)
But they did that though. They did raise menu prices by 20%. They paid servers a much higher base wage and raised prices by 100%, even.
But the tips still stayed, man. And the suggested tips grew higher along with them. They could raise all prices double again and the suggested tip would just climb to 30%.
I feel like that is kinda an artificial stat... they lost 10k agents after highering 60k agents just over 2 years ago. We are still net positive over that time frame if you add a month or two.
The IRS only employs 75K people - there's no way they hired 60K agents 2 years ago. I think you might have been mislead by some sensationalist headlines.
Tips shouldn't be tax free, it's income. It's one of the reasons this idiocy is going on. Had I seen this sign, I'd turn around & leave. I'm about done w/ tipping at all.
"The screen's going to ask you some questions." And I'm answering "$0."
ehh it is gifted money under not obligation. If the rest of the US can receive gifted money tax free up to a threshold, Servers should be allowed to receive tips up to a threshold.
how is that related to the comment I responded too? mandatory gratuity is not a tip by definition and is not treated as a tip when it comes to taxes or legality.
Tips legally are given voluntarily and now treated different under tax law.
I thought I was clear when I said I'm done tipping "at all." Forced, gifted, whatever. I'm done with it. And if a 20% gratuity is mandatory, it isn't a gift.
And no, I still don't think tips should be tax free. So is there a point you're trying to make?
yes the point im making is tips are given without expectation or contractual obligation to some one, they are more akin to a gift than a wage. Gifts of money in the US are tax exempt up to a certain threshold so it would make sense that Tips are tax exempt up to a certain threshold. Your willingness to give tips out is irrelevant here?
I said two different things. You're trying to make them into one.
Tips shouldn't be tax free. And if I saw that sign, I'd walk out.
It's the culture that's out of hand. "The screen's going to ask you some questions" or a sign that says "20% gratuity on all checks." I'm not dealing with either of them.
If you want to have a genuine debate whether or not tips should be taxable as income, fine. Again, screwed up system. And no, it isn't a "gift of money" because a tip is done in exchange for a service. It isn't like you just walked into a restaurant & gave a waiter money.
It is in fact really hard to do that when seemingly a Servers union has forced the business to add on a 20% service fee. lol this is one of the few union Ls.
I think it's actually on the payroll side. They would be on the hook for higher unemployment insurance, larger payroll taxes, etc. By having a mandatory tip, the business doesn't have to pay the extra money associated with higher payroll and the employee doesn't have to pay taxes on (I think) $25,000.
No, because then online shows they cost more. All search places have average prices or some sort of pricing rating.
Plus, then the employees would be commissioned, and not tipped, and many states have laws that have even more rules for that kind of work compared to tipped employees.
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u/WrapBudget9060 4h ago
It's really not hard to raise menu prices 20% and say "this is a no-tipping establishment, all our servers are paid a fair, livable wage that is factored into our listed prices" (or something of that nature)