4 ms·

When paying by card you can still stick a few pounds or dollars in the sleeve. Even when CC receipts had the open Tip: ____ line most times I would zero it and

When paying by card you can still stick a few pounds or dollars in the sleeve. Even when CC receipts had the open Tip: ____ line most times I would zero it and leave a cash tip when a tip was in order, off the books, not % skimming to cover merchant fees etc..

Double_a_92 9y ago
> When paying by card you can still stick a few pounds or dollars in the sleeve. That would seem cheesy af to me. Like "Here have some money you poor thing!"
- Jolter 9y ago
  Isn't that what a tip is?
- rypskar 9y ago
  What I have been told is that they want the tips in cash to not leave a trail for tax authorities to see. If they get the tip in cash they don't report it as income, if the tip is added to the card it get registered as tip and tax have to be paid. So basically tip is not only a way to get around paying the workers a livable salary but also a way to avoid taxes
  - walshemj 9y ago
    Its mainly to avoid the employer keeping the tip for them selves
    - FireBeyond 9y ago
      Eh - you only have to read forums to realize that it's a lot more to do with the taxes. I have heard more BS excuses from servers on forums: "The government demands we pay tax on these tips, even when we don't get them". No, the government recognizes you're in a cash-heavy industry, and would like you to document things. If you do, you pay tax on the tips you get, not the default amount. Quick way to get banned from said forums? Ask if they are sure to supply documentation when they get tips above and beyond that amount to the IRS. They also like to claim that "20% is cheap, you should be aiming for 25%"... eh.
valleyer 9y ago
That's true (and an admirable practice for the reasons you specify), but at that point it's no longer a matter of "here's a $50, keep the change". I and many people I know carry cash infrequently because of the ubiquity of credit card acceptance. Anyway, none of this is to disagree with you, but just to point out that your example might be less common in the U.S. than you think.

Double_a_92 9y ago

> When paying by card you can still stick a few pounds or dollars in the sleeve. That would seem cheesy af to me. Like "Here have some money you poor thing!"

Jolter 9y ago
Isn't that what a tip is?
rypskar 9y ago
What I have been told is that they want the tips in cash to not leave a trail for tax authorities to see. If they get the tip in cash they don't report it as income, if the tip is added to the card it get registered as tip and tax have to be paid. So basically tip is not only a way to get around paying the workers a livable salary but also a way to avoid taxes
- walshemj 9y ago
  Its mainly to avoid the employer keeping the tip for them selves
  - FireBeyond 9y ago
    Eh - you only have to read forums to realize that it's a lot more to do with the taxes. I have heard more BS excuses from servers on forums: "The government demands we pay tax on these tips, even when we don't get them". No, the government recognizes you're in a cash-heavy industry, and would like you to document things. If you do, you pay tax on the tips you get, not the default amount. Quick way to get banned from said forums? Ask if they are sure to supply documentation when they get tips above and beyond that amount to the IRS. They also like to claim that "20% is cheap, you should be aiming for 25%"... eh.

valleyer 9y ago

That's true (and an admirable practice for the reasons you specify), but at that point it's no longer a matter of "here's a $50, keep the change". I and many people I know carry cash infrequently because of the ubiquity of credit card acceptance. Anyway, none of this is to disagree with you, but just to point out that your example might be less common in the U.S. than you think.