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‘Pure greed:’ Etiquette expert explains why tipping has gotten out of control
(www.clickorlando.com)
this post was submitted on 12 Nov 2023
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If the employee is making that much then that amount is already added onto the price of the meal - whether it's officially or unofficially. Setting a real wage would just ensure that people get a consistent wage.
Op mentioned this is currently untaxed. I can't comment on where that's valid as I'm not from the us, but the tax part of that going into the government coffins instead of the waiter's pocket could make a large difference. Not a good reason not to do as I believe everyone should pay taxes, but that would explain while some waiters would be against it
Untaxed =/= taxfree. The waiters should report it as income, failure to do so is tax evasion.
So if the system is beneficial to them thanks to opening easy avenues to fraud, then it should be addressed right away.
I haven't worked in a restaurant in a while but as I remember it: A waiter/waitress is expected to report tips at 8% of the value of the checks they serve - the government assumes they get tips up to that amount. So they have to report tips, but they try to stick juuuust over that 8%. If the customer puts the tip on the credit card, then it's reported. if it's a cash tip, it only gets reported if it's needed to get up to that 8%. Everything else the IRS doesn't hear about. Waitresses at my restaurant would claim their tips at the end of a shift so it was a daily calculation.
That said, wait staff got $2.14/hr and the restaurant was responsible for making up the difference to minimum wage if there wasn't enough business. That never happened. Also, this info is about 30 years old and in Florida, so your mileage may vary. Some wait staff make crazy tips (depending on venue) and if they have to claim it, they pay a little more in tax but if they lose tips altogether they lose most of their income.
I wonder if untaxed tips are still significant factor now that electronic payment is so popular.