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I guess one of the few instances where I would readily tip is if a delivery person drove on his scooter through the pouring rain just to bring me my ****ing pizza, I would even feel bad despite tipping because I would be risking that person's life because of a stupid pizza. That is why I never order food...
Guess what. It varies by state, but tips are taxed. Not sure what state you live in but even right to work states have some sort of taxation on the tips. That's only for food service staff, though...not sure how it's handled in the case of hairdressers and others.
That is why one should always tip in cash, even when paying for the meal with a credit card. These people work hard for thier money and paying taxes for tips is silly. Give them cash and let them decide whether to report it or not.
Then perhaps they should demand their employer stop stealing their money, because that's what that delivery charge is to me.
Sorry, but I'm ordering a pizza. I'm not ordering a pizza PLUS paying the driver's hourly wage for the employer PLUS giving the driver a tip. I'll do two out of three, but that's it.
Since pizza delivery boys make about 7.50 an hour, and a delivery charge is like 2.50 these days, that means that if the driver makes 3 deliveries an hour (which should be simple), that means the pizza company is actually GETTING PAID to have the driver on staff if it's hogging all the delivery fees. That's something for the drivers to discuss with their bosses, not for me to subsidize.
I do agree with you on this though. I worked for quite a few pizza joints back in the day, and the owners always would say that the reason they kept a portion of the delivery charge was for "driver insurance purposes". This never made any sense to me because these companies never paid for any kind of insurance for the drivers-or any of the employees for that matter (not one ever offered any kind of health benefits)-so there's a good chance they're keeping the proceeds for themselves.
I think the reason I tip drivers is because it was a job I did for a while, and I remember how it was.
How can it be taxed when it never shows up in any documents? At least in most parts of Europe we just leave coins (and even bills) on the table in a restaurant or we slip them right into the hairdresser's apron pocket.
That doesn't mean anything. They are taxed on a percentage of their total sales....usually it's eight percent. And since most places put charge tips on employee's paychecks, taxes are taken out of those too. Then there is something called "allocated tips" that in some states employees have to declare.
That is why one should always tip in cash, even when paying for the meal with a credit card. These people work hard for thier money and paying taxes for tips is silly. Give them cash and let them decide whether to report it or not.
I usually leave a cash tip (mostly to ensure that the employee actually gets it) but rest assured that the IRS gets their mitts on part of that as well.
That doesn't mean anything. They are taxed on a percentage of their total sales....usually it's eight percent. And since most places put charge tips on employee's paychecks, taxes are taken out of those too. Then there is something called "allocated tips" that in some states employees have to declare.
To me that doesn't sound the way tips are supposed to work... In my view they are supposed to be a voluntary reward meant exclusively for the individual employee who deserves it.
To me that doesn't sound the way tips are supposed to work... In my view they are supposed to be a voluntary reward meant exclusively for the individual employee who deserves it.
Well, it's how it works. Remember that the next time you stiff someone. Also remember that tipped employees also have to tip out to other employees--dishwashers, bartenders, etc.
I'm only talking about restaurant employees here, though. Not sure how it works with pizza delivery drivers or others.
Why is that? Tips are not taxed, here at least. Tips are like Christmas presents. Whether or not someone gets a tip does not matter in terms of taxation.
Not true. In most states, the hospitality jobs pay *less* than minimum wage. The government *expects* that the hospitality employee will be getting tips to make up the difference between what the employer pays them, and the minimum wage. The taxes are deducted based on minimum wage, whether the employee earns that much or not.
When I lived in Florida, state minimum wage was around $5.00/hour. I worked as a waitress, and the minimum wage for waitresses was $2.01/hour. That means I was -expected- to earn, and taxed on, $3.00/hour more than my employer was actually paying me. It was expected that I would make up that $3.00/hour in tips.
If I made more than that, I was expected to declare it. Of course most people don't declare it, but that -is- the legal expectation when you are tipped in a professional capacity.
And...again...in states that do pay at least minimum wage, they are taxed on a percentage of their sales. They fill out whats called "tip sheets" at the end of every shift.
Well, it's how it works. Remember that the next time you stiff someone. Also remember that tipped employees also have to tip out to other employees--dishwashers, bartenders, etc.
I'm only talking about restaurant employees here, though. Not sure how it works with pizza delivery drivers or others.
Seems to be quite different from place to place. In Germany employees keep tips all to themselves, nor are tips taxed in any way, provided the recipient is an employee and not a freelancer or otherwise independent person.
In the US it seems to have become more like an assumed part of the employee's income. In this case I wonder if it wouldn't be better to just increase the price of the service or the salary and get rid of tips altogether.
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