Sucky Server

[Binky]

Here in Aus (from what I know) you are not required to tip at ALL but then our payrates are more reasonable. As an example they were advertising on our university website to come over and work at Disneyworld for a specified amount of time. The payrate was around US$6.25p/h which with the exchange rate equates to around AUD$8.42. Is that average?

I know my fiancé as an 18 y/o Pizza Hut were paying him around AUD$10.50 and even that was a rip off. He is now in a good job and get almost double the rate. But if he was tipped the government aren't any the wiser
(I mean they say it is supposed to be taxed but it happens so infrequently that they don't chase it up.). Do you guys get taxed if you do receive tips or not...that really sucks if you do!

I mean, I very RARELY tip, I have on a few occasions wanted to tip but not had the cash on me and if I add it to the bill it will be taxed so if I tip it's normally with whatever shrapnel I have in my purse...so only a few dollers..most I've ever tipped is $15 and that was because the waiter made the whole night exemplary!

I think a $3 tip for an $8 bill is awesomely kind of you! You paid that server MORE than enough! Good on you for being so generous!

[JustADude]

Here in Aus (from what I know) you are not required to tip at ALL but then our payrates are more reasonable.

A tip is totally optional, yes. It's just considered the traditional way of letting your server know you were happy with them. And, of course, in the US certain wait-staff are paid less than the minimum wage because it's expected for them to make up the difference in tips.

[CurlyLocks]

Do you guys get taxed if you do receive tips or not...that really sucks if you do!

Yes, restaurant workers in the US do get taxed at a rate which is assumed for tips. So even if you get plenty of SC's who didn't tip well, you're still going to be paying taxes on the amount of tips the government presumes you'll be making.
(Correct me if I'm wrong, restaurant workers)

[AirHostess]

50% tip!

In the UK the standard is 10%-12.5% cos of the minimum wage.

# The main rate for workers aged 22 and over increased on 1 October 2006 to £5.35 an hour from £5.05 an hour.

# The development rate for 18-21 year olds increased to £4.45 an hour from £4.25 an hour

# The development rate for 16-17 year old increased to £3.30 an hour from £3.00 an hour

[Arcade Man D]

Yes, restaurant workers in the US do get taxed at a rate which is assumed for tips. So even if you get plenty of SC's who didn't tip well, you're still going to be paying taxes on the amount of tips the government presumes you'll be making.
(Correct me if I'm wrong, restaurant workers)

Yes, but...

If a tipped employee makes less than true minimum ((in my state, 7.15/hour)) after tips + wages, the employer is required to make up the difference. As in, if they don't, they can get slapped with huge fines.

[CurlyLocks]

Thanks for the clarification.

[reformedwaitress]

If a tipped employee makes less than true minimum ((in my state, 7.15/hour)) after tips + wages, the employer is required to make up the difference. As in, if they don't, they can get slapped with huge fines.

Yes, but it's also minimum wage for the entire pay period. So two weeks, assume 35 hours, that's about $215. Most restaurants pay about $2.14, meaning you would make about $75 automatically from those 35 hours. That leaves not even $150 for the left over, which is less than $5 an hour. So NOT evening out to minimum wage is very very VERY rare. I have seen a restaurant have to "make up the difference" a total of once. And $7.15/hr is not even the national minimum wage, so it is lower in some states. (Minimum wage is NOT a living wage, nor is it meant to be, but that's a rant for another time.)

However, the government assumes you make at least 15% tips (or you wouldn't have a job) and therefore tax you as if you make at least 15% of your total sales (some places make you actually report all tips and they tax you there). So if you have lots of sucky customers you can be taxed on money you aren't making, even if you're making that "minimum wage" standard. Making a living waiting tables is rough if you get people that don't know how to or refuse to tip.

[CurlyLocks]

However, the government assumes you make at least 15% tips (or you wouldn't have a job) and therefore tax you as if you make at least 15% of your total sales (some places make you actually report all tips and they tax you there). So if you have lots of sucky customers you can be taxed on money you aren't making, even if you're making that "minimum wage" standard. Making a living waiting tables is rough if you get people that don't know how to or refuse to tip.

That was how I always understood it. It seems so incredibly unfair. It would be fantastic if we could just do away w/the tip system all together and pay servers regular wages, but I'm sure that won't be happening any time soon.

[Binky]

OMG! that sounds really bad! I won't go on as this isn't the place for rants about governments. But OMG guys! That’s just shocking! So basically you’re telling me that even if you make NO tips all week...your still going to be taxed for the money you DIDN'T earn, and if you don't have enough YOU have to make up the difference?? SH*T! I mean that’s the same here, you don't pay enough tax then YOU have to make up the difference...happened to me once....grrrrr

[Kiwi]

When I moved to Canada I found tipping really odd, now im far more comfortable with it. Ive noticed a difference in the service for North America though.

In NZ the service was "good" but in Canada the service is GREAT!!!!! Id never had a server come back more than once to check if things were fine, or refil my water (non-stop pop is very rare at home), alot of the time in places like dennys you have to flag down a waiter.

I have found the service levels in NA much higher than NZ, its going to be very hard to get used to a different way of serving when I go home for christmas!

[reformedwaitress]

So basically you’re telling me that even if you make NO tips all week...your still going to be taxed for the money you DIDN'T earn, and if you don't have enough YOU have to make up the difference??

Basically what happens is the taxes are taken out of the paycheck you get from the restaurant -- for most people just the $2.14/hour. Which means generally, you don't have a check at all -- the amount is $0.00. Filing taxes when you're a waitress can be painful cause you sometimes have to write a check to the government. I hate that.

[reformedwaitress]

It seems so incredibly unfair. It would be fantastic if we could just do away w/the tip system all together and pay servers regular wages, but I'm sure that won't be happening any time soon.

While I agree it would be nice to get regular wages, when I was waiting tables I wouldn't have wanted to get rid of the tip system. Yes I had bad days and weeks, but there were way too many times I cleaned up MUCH better than I would have. I never could have taken home $2000 in four days without the tipping system.

[CurlyLocks]

I understand what you're saying. My aunt used to work at a very upscale restaurant in Florida and she would have nights when she would make amazing tips. But on the other hand, she'd get times when famous, rich people would eat there and leave little or nothing and it was barely worth going to work.

One of my close friends in high school worked at a very expensive resort. She would frequently have large parties who would leave large tips, but unfortunately at this place, all the servers had to pool their tips. The people would sometimes put the tip right into her hand and say "This is for you", making it very clear they wanted to make sure she kept it. But she couldn't because it was a fireable offense. She said one time she kept an $80.00 tip (this was back in the early 80's), but she was scared to death of getting caught. She busted her butt working for the customers, yet others there would give crappy service, and at the end of the night, they'd all split the tips evenly. That is just ridiculous.
So I guess I'm saying that I can see why sometimes tips would be great, but it seems like there is so much potential for misery and abuse in the current system.

[reformedwaitress]

unfortunately at this place, all the servers had to pool their tips. The people would sometimes put the tip right into her hand and say "This is for you", making it very clear they wanted to make sure she kept it. But she couldn't because it was a fireable offense.

I won't work somewhere that pools server tips. Pooling bar tips I can somewhat understand, since usually multiple bartenders help each patron. But servers? No way am I going to bust my butt to bring in $500 in tips and then have to share that with someone who is lazy and does nothing (like some of my former co workers) who couldn't bring in over $50. NOT happening. Sorry. (yes, that happened. I posted somewhere here about it before. I'll have to find the post)

So I guess I'm saying that I can see why sometimes tips would be great, but it seems like there is so much potential for misery and abuse in the current system.

I think the potential for it to be BETTER than paying someone a set amount is probably why we keep it. Now I did work somewhere once that they paid us $6/hr and tips on top of that. THAT place had amazing servers and very VERY little turn over. But that is not a requirement and establishments like that are few and far between.

But trust me, when I win the lottery and own my own bar? The waiters and bartenders will definitely not be making $2.14/hr.

[Rapscallion]

OMG! that sounds really bad! I won't go on as this isn't the place for rants about governments.

If it doesn't degenerate into regular politics and stays on a customer service issue, and without attacking each other, I think this is pretty on topic for the forum and not a problem.

Rapscallion