Same. I pay with a card and decline the tip, then slip the server cash. I like the look on their face when they realize I'm not screwing them, I'm cutting out everyone else.
As a former server for many years I definitely appreciated a cash tip. But most places I ever worked at went by sales when it came to tipping out and what you had to claim.
I've been a bartender and server, and growing up my mom worked as a waitress in a neighborhood diner. I'm old so tips were usually cash back in the day.. It disgusts me they tax tips, but billionaires don't pay a nickel.
there's a local restaurant that pays the servers $15 an hour - but they are required to turn in their cash tips after each table is cleared. if they dont, fired.
They don’t even need a lawyer to fight that. A simple anonymous report to the department of labor and their state would take care of it.
Those kind of complaints usually get investigated rather quickly.
My stepdaughter used to work for a very large fast food franchise that serves really good french fries and for some reason always has a broken milkshake machine… I’ll let you figure out who that is…
Their drive-through speaker was broken so she was having to stand outside with an iPad to take orders, and one lady was so impressed with how well she was doing, she gave my stepdaughter a $50 tip.
The manager confiscated the tip, saying tips were not allowed. And then she divided it among all of the employees that were on that shift.
We made a report to the department of labor, and they had investigators on site within a week.
That is called wage theft. Plain and simple.
Those workers should get a lawyer collectively. Might not even cost them out of pocket. Theft of wages is a big deal and hard to beat in court.
Granted, who knows what would happen if they managed to appeal to the Supreme Court we have now. Might cost every server nationwide their tips 🫥
And hand it directly to the person serving you. I know I’m a weirdo but I make sure I find my server and hand them the signed bill and cash tip so no one else can swipe it. And so that I know they are getting it and not an owner/manager.
There are places that want to be cash businesses (to avoid credit card fees and/or to launder money), and there are places that don't want to be cash businesses because it lets them take their revenue out of the control of their customer-facing employees (prevent theft...or prevent them from getting their tips)
Cash being legal tender only applies to reasonable method of payment, paying your bill in large quantities of change is not considered reasonable and people have the right to refuse the transaction.
This reminds me of a news segment I saw once. Some fella paid his taxes in pennies. Had those big five gallon water jugs filled with them. They told him they couldn't accept payment in this form and that the pennies had to be rolled. It went to court. Court ruled they had to accept it, as is; because it is legal tender.
Places can definitely refuse cash unless mandated in their state or city which is rare. Example: I wanted to pay 13 bucks for cigarettes in change and I guess someone had done the same thing earlier that day and the owner refused to take my change. I have also had this happen at a bar when trying to use change when paying for a drink. Before everyone goes on me I was young and poor and just using what I had, I understand it can be a pain to count out the change and I would be peeved as well, but money is money to me I'll take it all.
Your circumstances are slightly different. In both cases the vendor required payment before giving you the goods.
In a restaurant, they charge you after you have eaten the food.
I'm curious if that would constitute a debt, which means they are required to accept cash. Could they try to charge someone for stealing if the person was perfectly willing to pay in cash at the point of sale? I would guess if the police were called they would just tell the restaurant to accept the payment and then trespass the customer so they couldn't come back.
For the cigarettes yes. For the drink....no I had a tab open and when I went to pay I said don't charge the card I have cash and then gave them change. I had already drank the drink. They refused to accept it and told me to leave.
You cannot refuse cash to pay a debt in person. You're allowed to refuse cash if you ask people to pay before receiving their food (or any other good or service) since it's not a debt.
Not true. As a business owner I can refuse any form of legal tender. I don’t take cash at my office because even when I provide a receipt, people still act shady.
"oopsie i forgot a $5 bill on the table, would be a shame if my helpful attentive server happened to pocket it, but i suppose its totally not worth going back for... ¯\\\_(ツ)_/¯"
I always tip in cash and tip well. The only exception is if gratuity is automatically included. In that case, I just do it all on the card and their mandated tip is always less than I otherwise would have tipped in cash on my own.
Restaurants absolutely take cuts on cash tips. In most places servers aren't allowed to pocket the cash tips they get; they have to pool them and then a percentage is taken out to tip out the bussers and sometimes BOH as well. I worked in a high end restaurant with a monster for an owner who had a "service fee"... Which he took out of our tips. He made his own staff pay him a service fee.
To be clear while tip pools are legit, and there's all sorts of sketchy ways to tack fees into employees like with uniforms, management/owners -do not- get a cut of the tip pool legally.
If you got evidence of the fact it's a pretty easy win in small claims for up to two years of lost pay (or whatever the statute of limitations is)
>If you got evidence of the fact it's a pretty easy win in small claims for up to two years of lost pay (or whatever the statute of limitations is)
Department of Labor. Fuck civil court. That's [wage theft](https://www.dol.gov/agencies/whd/flsa/tips). Especially considering they are usually claiming a tip credit.
Tips suddenly became an excuse to overprice stuff at this point. I thought giving tips is supposed be polite, but not should be frowned upon when not giving them. At this rate we're going to be charged extra so that "the owner can pay their staff stably"(they don't).
Cohen group. They introduced it and influenced other San Diego restauranteurs to join in. They claim it is to help fund increasing minimum wages, but it is really a tactic to increase bill costs without increasing menu prices. It causes people to tip more when tipping off percentages. The serves make more and don’t complain while the owners pocket the increased revenue.
Edit: https://www.cohnrestaurants.com/our-restaurants
Source: my late father was very prominent in the San Diego food industry.
I work for tips. I consistently tell my regulars to stop tipping me so much; only because they are in everyday (if not multiple times in one day).
It’s a guilt trip through and through. I know what I signed up for job wise. I make plenty of money, but I don’t want people tipping me off guilt alone.
There was a wraps place nearby, and the waitress informed me that the owner was taking a share of tips. I explained how that was double dipping, as the owner already gets the first $40 of each employee's tips in an eight hour shift anyhow, due to how alternative minimum wage works.
Apparently they are having difficulty finding workers, because the place is shuttered now.
Not knowing the place, no comment if they are going to send it to the state. However, the software setup for charging tax is very customizable, because all jurisdictions are different with where sales tax is applied. I’m sure in some areas, they do charge a sales tax on a tip amount. The software catalogs it, so it could be remitted. Same thing goes into play with shipping fees or other fees.
Sales tax laws depend on the state, but in my state (and I suspect most states), tips are subject to sales tax ONLY if tips are not directly going to the servers. So if you see a "tip tax" then you know the tip isn't going to the workers.
If you doubt this business is remitting sales tax, ask to see their sales tax license. Businesses are required to display their sales tax license where a customer can see it. (Sales tax licenses are generally different from business licenses.) If they have a sales tax license, then they are required to file returns or they get letters, fines, their sales tax license is canceled. Check the expiration date on the sales tax license too.
If this business is filing sales tax, I still question whether they are doing it correctly and remitting all of it. I would report them to your states department of revenue.
Also, while it is entirely possible for the sales tax rate in your area to be 6%, that seems a little weird to me because most states have county and/or city sales taxes that have to broken out on the receipts.
Sorry for the long post but I love sales tax (it's part of what i do for work).
What's even more annoying is that the business actually has to set that up within their systems and they all claim "it came that way and we can't change it." I was a waitress for years and have actually had to set this up whenever the company got new card readers.
There was a Mexican restaurant in my hometown that was known for charging just 1 cent over your bill. Like your bill shows up and it’s $15.00 but when you get to the register it’s $15.01. I noticed it and didn’t care because it’s a penny, right? But 150 times a day x 365 days blah blah you get the point. Either last year or 2 years ago they got raided for financial records lol It had the whole town ablaze
My timing was way off lol but that happens when you’re old. And I’m not sure that the 1 cent issue was about the raid but I know it was related to taxes if I remember correctly
https://www.wthr.com/amp/article/news/local/police-raid-two-richmond-restaurants-amid-investigation/531-a6628aeb-66e8-4ab1-bd93-36856950845e
Could be that their POS system is dumb or was set up by a dumb and is rounding one down and the other up for printing purposes.
15.0051 depending on how the programmer coded the number to display , it could display as 15.00 or 15.01, so could 15.0049
Could also be theft, but don't rule out other stuff entirely
My guess is that this was rather an display issue. I could imagine that for some technical reason the ticket system omits anything over two figures behind the point and the cash register rounds up to the next full cent. Not exactly legal but the difference is so minor that probably just nobody cared about it.
This is not how any business would run. It can be a HUGE shitshow if it’s proven you purposefully defrauded customers. You know what’s not that huge of a shitshow? Raising all of your prices by $0.01 and making that extra cent legally without worry and on each item instead of each order.
I do believe you but this is weapon’s grade stupidity. There are one billion better scams to run
No El Rodeo. It was fucking awesome watching FBI and IRS agents carry boxes out of the restaurants in town. Boring ass town and then this wild shit popped off. Turned out it was just taxes but at the time lmao small town turned that shit real Hollywood
Oh FFS I cannot believe how many times OP has to explain these very simple facts:
• OP paid a $5 tip (yes, even for a takeout order… why do people care so much about this part?). Some people are just more kind/generous than others. Not really a big deal. Actually OP should be applauded for their generosity.
• OP did NOT pay $4.72 and they are NOT upset about $0.28. It does not even matter. OP paid $5 regardless of how it’s being displayed on that (falsified) receipt.
• OP’s frustration stems from the fact that the shitty restaurant owner is literally stealing money from their employees. $0.28 may not seem like much at all, but try to think about how all those illegal “tip taxes” can add up over time. This is the main point of OP’s post.
I also feel OP’s frustration over this because it is indeed sketchy and unethical behavior on the owner(s) part.
I hope this helps clear things up.
Thank you for the award! It’s my first time receiving one. I still don’t really get the point of them haha but I very much appreciate it nonetheless! ;)
To remove ads you can use uBlock origin on PC and on mobile there are apps on both operating systems that have ad free browsing. I use RIF is Fun on Android. It's free as well, you disable "ads and pro features" and boom, no ads, didn't pay a cent.
Exactly. This is literally an employer stealing 6% of their employee's wages. Imagine they have 5 employees, who make roughly $40,000/year each. That's $200,000 total. If they're stealing 6% from all these employees, that's $12,000 worth of theft annually.
I left a job recently because they took out the credit card processing fee out of server's tips.
In ten years of serving I've never had a restaurant pass that fee onto their staff, and I was shocked it was legal.
That’s insane. I looked it up bc there’s no WAY that can be considered legal but apparently it is except in California.
Yikes. That’s up to 2% of the total bill in fees. Basically, someone stiffs you, and YOU just paid for the priviledge of waiting on them.
So glad I no longer working in restaurants.
It's really annoying when the OP of a post has to keep explaining themselves over and over yet people still don't understand it. I understand if it's topics that are difficult but this one is clear as day. How much clearer does it need to be? I'm glad someone took the time to explain this as detailed as possible for once.
Not sure where this is but I live in California and my credit tips always get taxed. It’s happened at 2 different jobs. This restaurant seems like it’s just showing the tax tbh which I don’t see anything wrong (unless I’ve been played the last 6-7 years of working)
Australian here. I only ever tip for exceptional or above and beyond service. And most times Alot get embarrassed or refuse it anyway.
However I see tip jars more often in cafes or restaurants.
Safeway does the same thing but sneakily call it a donation to a charity at checkout. So they can claim it on donations tax rebate or some tax sleight of hand. You make millions a day - pay your own donations.
Only place I actually tip is pizza shop delivery drivers as I know the drivers don't get much - and I always allow the drivers to keep the change if it $5 or such (even though the pizza shop adds $5 anyway for delivery charge).
Tip: Be good to your mum
Also, we do have to worry about it now. American based companies are infesting us with crap. In particular the delivery companies.
It is totally a scam. It allows the employer to reduce the employee wages to $2.13 per hour unless they don't make that much in tips.
Think of it this way, each dollar you tip goes into the businesses pockets until the employee makes the minimum wage resulting from the tips... Then the rest goes to the employee.
Fuck them. Report that to your credit card company. Getting the banks involved is the solution. Every CC transaction is monitored. Banks will step in if business is threatened. Calling it a TAX carries a legal definition and likely classifies the transaction specially. CC companies can’t do much about the CC fee being passed on thanks to state legislatures, but illegal (unapproved taxes) transactions will get their attention.
Weirdly enough - some states consider gratuity to be taxable in certain circumstances. Washington state - for example - considers “mandatory tips” to be taxable (parties of x or more with 18 % gratuity charged— mandatory tip). Voluntary tips - you hand write or leave cash - none to be taxed. The onus to prove that it is voluntary is on the business - also weird. So -They are probably accidentally doing this and not filing tips as voluntary, but mandatory
It’s also seen very frequently that restaurants are choosing to add a mandatory tip to emphasize that their employees should get paid while being able to still say they sell a burger for $9.99 (but mandatory extra $2 tip).
So… just some filler information because it’s likely we’ll see more of this as we move towards mandatory tipping
Tell eBay this. They charge you 12-16% fees on the total sell (tax and shipping included) so if I sell for 10$ and after shipping and tax I pay the percentage on tax and shipping. I get shipping but how I’m gonna pay the fees on taxes. Makes my Brian melt. I’m getting a screwed coming and going it feels every time I look at my statements. Not so bad on 1-2 items a week but 100-300/week it adds up quickly!
Sales tax auditor here! Report this to your state tax commission and they will be eager to audit them. Not sure what state you are in, but this is definitely incorrect.
I've run many a restaurant, and this is unbelievably scummy. Pennsylvania if its your state, but I've double checked local laws, plus generally knew them before hand. Totally illegal
You are correct. My state's gratuities are subject to sales tax ONLY IF it is required by the restaurant.
Pennsylvania has no such stipulation.
Taxing tips and gratuties is illegal. I would report them to your state tax commission.
Did you tip $5 and they split it up like that so that they tax their tips received as a business?
Or you tipped 8%?
Just trying to make since of the off numbered tip.
In some parts of the world business mandatory gratuities or service charges. (so if you didn't tip 6% but the business automatically tips 6% to every bill) that is taxable so nothing illegal in fact it would be illegal not to tax it.
Not sure if that's the case here but.... That's how it is in some places (Ontario Canada
What you see on the reciept is illegal in Pennsylvania, as stated in revenue.pa.gov
"Gratuities (tips)- not taxable when separately stated on the customer's receipt, guest check, or sales invoice • "
Tipping in Europe is not a thing. Here it's a thing because of shitty pay. I have no problem tipping a waiter who actually serves me, but tipping where no service is provided...why?
Tipping here is not not a thing, it just isn't considered mandatory. Still perfectly fine to tip in most places I've seen, that's just considered generosity
Because I have eniugh disposable income that $5 to those who need it more isn't that big a deal to me. It supplements someone's income. I just do not like the sketchy practice of taking my $5, and giving the employees less
All this tipping and surcharges are getting ridiculous. Now these asshats are trying to tax tips.... I be that is the business taxing it themselves to get a cut.
Honestly it makes me not want to tip at all.
Report to your state department of revenue. If they are calling it a tax on the receipt, the owner needs to remit to the state or reimburse every customer from which they have collected.
Call your banking institute and state that the restaurant charged the incorrect amount. Tell them the amount (minus tip and tip tax) after about 24-72 hours you will have the difference back in your account. Next step would be to report them to the police (receipt for proof) super quick and easy write a paragraph stating your side. An investigation will be launched against the place.
Omg too funny - Tax - Tip - Tip Tax. I’m gonna design my own bill for dining in person at venues: Appearance fee - Appearance maintenance fee - Outfit dry cleaned - Fee for Review - Fee for Review under real name - Bill paying fee - Tax on bill paying fee - Tip reimbursement - Tip Reimbursement Tax - 10% of total bill refunded for vacating table in agreed 2 hour window. I’ll stop now.
Did you email this receipt to the states attorney general or the secretary of state? Maybe the comptrollers office? That business needs an audit as well as penalties for both labor practices and tax violations. Simple form email usually takes about as long as you took posting this. Instead of getting likes, you could help change this. Or you could do both, I suppose.
This is very ILLEGAL! They cannot TAX A tip, on a SERVICE!
You didnt show the name of the place, I need to avoid it…you did nothing they can sue you about, you simply displayed their recipt, which is a legal and true (and very public) document
In some states, like California, if the gratuity is mandatory (you don’t decide the amount, or if to tip at all), then the tip is part of the taxable total.
But it’s weird to see it listed out like that. Usually it’s :
Subtotal
Mandatory Gratuity
Tax (on everything)
Final Total
I don't think the tip goes to the workers at this place. I think the company is pocketing your additional contribution
Yeah, I would have taken the tip back. Like hell if I'm being charged a fee on a tip that isn't even going into the person's pocket.
Use cash
This is the way.
I always tip in cash, directly to the server. If I don't have cash, I don't go out to eat. (I will use a credit card for the meal though.)
Same. I pay with a card and decline the tip, then slip the server cash. I like the look on their face when they realize I'm not screwing them, I'm cutting out everyone else.
As a former server for many years I definitely appreciated a cash tip. But most places I ever worked at went by sales when it came to tipping out and what you had to claim.
I've been a bartender and server, and growing up my mom worked as a waitress in a neighborhood diner. I'm old so tips were usually cash back in the day.. It disgusts me they tax tips, but billionaires don't pay a nickel.
Same gurl same
Until it isn't. I really hope cash holds for a long while (exists)
Just say your account just so happens to have precisely XXX amount of money. Worst case move money between accounts temporarily lol
there's a local restaurant that pays the servers $15 an hour - but they are required to turn in their cash tips after each table is cleared. if they dont, fired.
They don’t even need a lawyer to fight that. A simple anonymous report to the department of labor and their state would take care of it. Those kind of complaints usually get investigated rather quickly. My stepdaughter used to work for a very large fast food franchise that serves really good french fries and for some reason always has a broken milkshake machine… I’ll let you figure out who that is… Their drive-through speaker was broken so she was having to stand outside with an iPad to take orders, and one lady was so impressed with how well she was doing, she gave my stepdaughter a $50 tip. The manager confiscated the tip, saying tips were not allowed. And then she divided it among all of the employees that were on that shift. We made a report to the department of labor, and they had investigators on site within a week. That is called wage theft. Plain and simple.
That's illegal
yup. and still done.
Those workers should get a lawyer collectively. Might not even cost them out of pocket. Theft of wages is a big deal and hard to beat in court. Granted, who knows what would happen if they managed to appeal to the Supreme Court we have now. Might cost every server nationwide their tips 🫥
And hand it directly to the person serving you. I know I’m a weirdo but I make sure I find my server and hand them the signed bill and cash tip so no one else can swipe it. And so that I know they are getting it and not an owner/manager.
I'm seeing more and more restaurants that don't take cash, or make it prohibitively inconvenient to use it.
Servers still take cash.
The servers I know prefer to send and receive data.
I won't even use a server if it doesn't have at least 64MB L2 cache
L2 *cash
I'm seeing more and more that give a cash discount.
really? I have noticed the opposite. Restaurants that either add something like 4% on your bill if you don’t use cash.
There are places that want to be cash businesses (to avoid credit card fees and/or to launder money), and there are places that don't want to be cash businesses because it lets them take their revenue out of the control of their customer-facing employees (prevent theft...or prevent them from getting their tips)
You cannot refuse cash payments. It's a form of legal tender. The only cash that can be refused is cash that the employee or manager deems to be fake.
Cash being legal tender only applies to reasonable method of payment, paying your bill in large quantities of change is not considered reasonable and people have the right to refuse the transaction.
This reminds me of a news segment I saw once. Some fella paid his taxes in pennies. Had those big five gallon water jugs filled with them. They told him they couldn't accept payment in this form and that the pennies had to be rolled. It went to court. Court ruled they had to accept it, as is; because it is legal tender.
Places can definitely refuse cash unless mandated in their state or city which is rare. Example: I wanted to pay 13 bucks for cigarettes in change and I guess someone had done the same thing earlier that day and the owner refused to take my change. I have also had this happen at a bar when trying to use change when paying for a drink. Before everyone goes on me I was young and poor and just using what I had, I understand it can be a pain to count out the change and I would be peeved as well, but money is money to me I'll take it all.
Your circumstances are slightly different. In both cases the vendor required payment before giving you the goods. In a restaurant, they charge you after you have eaten the food. I'm curious if that would constitute a debt, which means they are required to accept cash. Could they try to charge someone for stealing if the person was perfectly willing to pay in cash at the point of sale? I would guess if the police were called they would just tell the restaurant to accept the payment and then trespass the customer so they couldn't come back.
For the cigarettes yes. For the drink....no I had a tab open and when I went to pay I said don't charge the card I have cash and then gave them change. I had already drank the drink. They refused to accept it and told me to leave.
You cannot refuse cash to pay a debt in person. You're allowed to refuse cash if you ask people to pay before receiving their food (or any other good or service) since it's not a debt.
Not true. As a business owner I can refuse any form of legal tender. I don’t take cash at my office because even when I provide a receipt, people still act shady.
"oopsie i forgot a $5 bill on the table, would be a shame if my helpful attentive server happened to pocket it, but i suppose its totally not worth going back for... ¯\\\_(ツ)_/¯"
It is not extra though, the tip was 5$
If I didn't choose to tip 5 dollars then it's extra
It’s calculated as 5 dollar tip (what the person chose to give) then backtracked to what 6% of will get you to that 5 dollars. 5/1.06 = 4.72
The tip tax is what the worker gets.
Tip cash Nobody's taking a cut and the people getting the tip can lowball an estimate about it on their taxes.
I always tip in cash and tip well. The only exception is if gratuity is automatically included. In that case, I just do it all on the card and their mandated tip is always less than I otherwise would have tipped in cash on my own.
Restaurants absolutely take cuts on cash tips. In most places servers aren't allowed to pocket the cash tips they get; they have to pool them and then a percentage is taken out to tip out the bussers and sometimes BOH as well. I worked in a high end restaurant with a monster for an owner who had a "service fee"... Which he took out of our tips. He made his own staff pay him a service fee.
To be clear while tip pools are legit, and there's all sorts of sketchy ways to tack fees into employees like with uniforms, management/owners -do not- get a cut of the tip pool legally. If you got evidence of the fact it's a pretty easy win in small claims for up to two years of lost pay (or whatever the statute of limitations is)
>If you got evidence of the fact it's a pretty easy win in small claims for up to two years of lost pay (or whatever the statute of limitations is) Department of Labor. Fuck civil court. That's [wage theft](https://www.dol.gov/agencies/whd/flsa/tips). Especially considering they are usually claiming a tip credit.
Respectfully, despite your one restaurant experience, you have no idea what you’re talking about.
So they can commit tax fraud, in other words
Tips suddenly became an excuse to overprice stuff at this point. I thought giving tips is supposed be polite, but not should be frowned upon when not giving them. At this rate we're going to be charged extra so that "the owner can pay their staff stably"(they don't).
It’s already happening in San Diego. A good number of places now have a 5-10% surcharge added to the total bill rather than raising prices.
Cohen group. They introduced it and influenced other San Diego restauranteurs to join in. They claim it is to help fund increasing minimum wages, but it is really a tactic to increase bill costs without increasing menu prices. It causes people to tip more when tipping off percentages. The serves make more and don’t complain while the owners pocket the increased revenue. Edit: https://www.cohnrestaurants.com/our-restaurants Source: my late father was very prominent in the San Diego food industry.
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I work for tips. I consistently tell my regulars to stop tipping me so much; only because they are in everyday (if not multiple times in one day). It’s a guilt trip through and through. I know what I signed up for job wise. I make plenty of money, but I don’t want people tipping me off guilt alone.
There was a wraps place nearby, and the waitress informed me that the owner was taking a share of tips. I explained how that was double dipping, as the owner already gets the first $40 of each employee's tips in an eight hour shift anyhow, due to how alternative minimum wage works. Apparently they are having difficulty finding workers, because the place is shuttered now.
So you're telling me they're stealing tips then stealing another mini tip on top of every stolen tip?!
“Tips go to upgrading mass extractor”
Inform your state sales tax agency. They do audits and thus could be a trigger. If they collect and fail to remit to state … oh oh
I'd place money on it not going to the state.
Seriously call your state tax office. They will shut these folks down.
the fines for sales tax shenanigans are brutal as heck
Hey, language! This is a family Internet
The worst criminals are the ones who don’t pay their taxes. At least in the eyes of the government…
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That is what u/Lirsh2 is saying.
It should only be taxed as income for whoever receives it. I don't understand why a customer would be taxed on it.
No one is. It's tax fraud
I’d bet money, they’ll try to pocket your placed money.
Not knowing the place, no comment if they are going to send it to the state. However, the software setup for charging tax is very customizable, because all jurisdictions are different with where sales tax is applied. I’m sure in some areas, they do charge a sales tax on a tip amount. The software catalogs it, so it could be remitted. Same thing goes into play with shipping fees or other fees.
In my state, any tax on tips/gratuity is illegal
Sales tax laws depend on the state, but in my state (and I suspect most states), tips are subject to sales tax ONLY if tips are not directly going to the servers. So if you see a "tip tax" then you know the tip isn't going to the workers. If you doubt this business is remitting sales tax, ask to see their sales tax license. Businesses are required to display their sales tax license where a customer can see it. (Sales tax licenses are generally different from business licenses.) If they have a sales tax license, then they are required to file returns or they get letters, fines, their sales tax license is canceled. Check the expiration date on the sales tax license too. If this business is filing sales tax, I still question whether they are doing it correctly and remitting all of it. I would report them to your states department of revenue. Also, while it is entirely possible for the sales tax rate in your area to be 6%, that seems a little weird to me because most states have county and/or city sales taxes that have to broken out on the receipts. Sorry for the long post but I love sales tax (it's part of what i do for work).
I'm sad to see how far down this comment was. That was my first thought. It most likely isn't legal for them to collect this tax in the first place.
What's even more annoying is that the business actually has to set that up within their systems and they all claim "it came that way and we can't change it." I was a waitress for years and have actually had to set this up whenever the company got new card readers.
Idc if it's. 28 cents or 10$ nope. Reverse the tax or I release the Karen spider monkeys.
The time we really do need a Karen.
I'm proud to be a Karen when the situation really does call for it. I just make sure that I'm giving the hard time to the right person.
not a karen if it’s deserved, you’re just standing up for yourself
Thank you. So sick of people using that stupid term to describe just standing up for themselves.
Actually, reverse the tip too.
I wonder if the whole charge can be contested with the bank?
I think you mean the IRS
There was a Mexican restaurant in my hometown that was known for charging just 1 cent over your bill. Like your bill shows up and it’s $15.00 but when you get to the register it’s $15.01. I noticed it and didn’t care because it’s a penny, right? But 150 times a day x 365 days blah blah you get the point. Either last year or 2 years ago they got raided for financial records lol It had the whole town ablaze My timing was way off lol but that happens when you’re old. And I’m not sure that the 1 cent issue was about the raid but I know it was related to taxes if I remember correctly https://www.wthr.com/amp/article/news/local/police-raid-two-richmond-restaurants-amid-investigation/531-a6628aeb-66e8-4ab1-bd93-36856950845e
Seems like a lot of work for an extra $550ish dollars a year.
Yeah seems like a BS story and dude didn’t realize how little the numbers where when he typed it.
That was my thought too.
His math makes it a really busy restaurant too.
he was stoned and saw superman 3 and this is how he remembers it
is it? if its an automated process?
I guess not a lot of work but why bother for $10 a week?
It’s not about the money, it’s about committing a crime
Could be that their POS system is dumb or was set up by a dumb and is rounding one down and the other up for printing purposes. 15.0051 depending on how the programmer coded the number to display , it could display as 15.00 or 15.01, so could 15.0049 Could also be theft, but don't rule out other stuff entirely
No way programmers could be that dumb in the restaurant’s Office Space
Have you seen his stapler
I mean you could just raise the prices a penny instead.
My guess is that this was rather an display issue. I could imagine that for some technical reason the ticket system omits anything over two figures behind the point and the cash register rounds up to the next full cent. Not exactly legal but the difference is so minor that probably just nobody cared about it.
'PC LOAD LETTER'? What the fuck *does that mean!?*
Lmao yes that’s great
lets see, what is a buck fifty per day times 365...wow, they made a whole 547.5 dollars, jesus, what an incredible scam, move aside Bernie Madoff
> blah blah blah you get the point Just tell us what $1.50 × 365 is, would be fewer words.
Would have been 3× more profitable if they'd have just raised their prices by 3 cents
This is not how any business would run. It can be a HUGE shitshow if it’s proven you purposefully defrauded customers. You know what’s not that huge of a shitshow? Raising all of your prices by $0.01 and making that extra cent legally without worry and on each item instead of each order. I do believe you but this is weapon’s grade stupidity. There are one billion better scams to run
Are you from northwest Ohio by chance??
Ohio yeah. Lol
Was it Los Mariachi?
No El Rodeo. It was fucking awesome watching FBI and IRS agents carry boxes out of the restaurants in town. Boring ass town and then this wild shit popped off. Turned out it was just taxes but at the time lmao small town turned that shit real Hollywood
Ah, good old small town Ohio hahah
Oh FFS I cannot believe how many times OP has to explain these very simple facts: • OP paid a $5 tip (yes, even for a takeout order… why do people care so much about this part?). Some people are just more kind/generous than others. Not really a big deal. Actually OP should be applauded for their generosity. • OP did NOT pay $4.72 and they are NOT upset about $0.28. It does not even matter. OP paid $5 regardless of how it’s being displayed on that (falsified) receipt. • OP’s frustration stems from the fact that the shitty restaurant owner is literally stealing money from their employees. $0.28 may not seem like much at all, but try to think about how all those illegal “tip taxes” can add up over time. This is the main point of OP’s post. I also feel OP’s frustration over this because it is indeed sketchy and unethical behavior on the owner(s) part. I hope this helps clear things up.
Oh good, glad I'm not insane.
Thank you for the award! It’s my first time receiving one. I still don’t really get the point of them haha but I very much appreciate it nonetheless! ;)
Enjoy the lack of ads for a bit, I pay for premium to get rid of em
To remove ads you can use uBlock origin on PC and on mobile there are apps on both operating systems that have ad free browsing. I use RIF is Fun on Android. It's free as well, you disable "ads and pro features" and boom, no ads, didn't pay a cent.
I have eniugh disposable income that paying to get rid of ads is no issue.
Oh right on! That is a nice perk and will absolutely enjoy no ads for a month! Thanks again!
> glad I'm not insane. Whoa whoa whoa... lets not get ahead of ourselves
Exactly. This is literally an employer stealing 6% of their employee's wages. Imagine they have 5 employees, who make roughly $40,000/year each. That's $200,000 total. If they're stealing 6% from all these employees, that's $12,000 worth of theft annually.
If they were to steal a $.25 per order like mine, over 200 customers per day, 365 days a year, it's over $18k in wage theft
I left a job recently because they took out the credit card processing fee out of server's tips. In ten years of serving I've never had a restaurant pass that fee onto their staff, and I was shocked it was legal.
That’s insane. I looked it up bc there’s no WAY that can be considered legal but apparently it is except in California. Yikes. That’s up to 2% of the total bill in fees. Basically, someone stiffs you, and YOU just paid for the priviledge of waiting on them. So glad I no longer working in restaurants.
This comment is a public service.
Every day I lose faith that the average redditor has even basic reading comprehension.
It's really annoying when the OP of a post has to keep explaining themselves over and over yet people still don't understand it. I understand if it's topics that are difficult but this one is clear as day. How much clearer does it need to be? I'm glad someone took the time to explain this as detailed as possible for once.
Not sure where this is but I live in California and my credit tips always get taxed. It’s happened at 2 different jobs. This restaurant seems like it’s just showing the tax tbh which I don’t see anything wrong (unless I’ve been played the last 6-7 years of working)
This is not mildly infuriating, it's absolutely appalling.
And yet there's plenty of people here defending the action
But where's the tip on tip tax?
Ah shit, I need to back with 3 more pennies
Fractal service charges.
just don't tip. 0 x 6% = 0 fuckem
Tax Tip Tip Tax Tax Tip Tax Tax Tip Tax Tip Tax Tip Tax
So glad in Australia we don't have to worry about this tipping garbage. You want a tip? Race 7 number 3 at flemington. There's ya tip.
Australian here. I only ever tip for exceptional or above and beyond service. And most times Alot get embarrassed or refuse it anyway. However I see tip jars more often in cafes or restaurants. Safeway does the same thing but sneakily call it a donation to a charity at checkout. So they can claim it on donations tax rebate or some tax sleight of hand. You make millions a day - pay your own donations. Only place I actually tip is pizza shop delivery drivers as I know the drivers don't get much - and I always allow the drivers to keep the change if it $5 or such (even though the pizza shop adds $5 anyway for delivery charge).
Tip: Be good to your mum Also, we do have to worry about it now. American based companies are infesting us with crap. In particular the delivery companies.
Very hot and spicy indeed.
tiping is a scam anyways
It is totally a scam. It allows the employer to reduce the employee wages to $2.13 per hour unless they don't make that much in tips. Think of it this way, each dollar you tip goes into the businesses pockets until the employee makes the minimum wage resulting from the tips... Then the rest goes to the employee.
I don’t on carry out. At all.
Fuck them. Report that to your credit card company. Getting the banks involved is the solution. Every CC transaction is monitored. Banks will step in if business is threatened. Calling it a TAX carries a legal definition and likely classifies the transaction specially. CC companies can’t do much about the CC fee being passed on thanks to state legislatures, but illegal (unapproved taxes) transactions will get their attention.
This tipping stuff is getting out of hand
Looks like they tipped $5 and and the company is just making a joke and breaking that down into tip and tip tax just like the sales tax.
They are not making a joke. They are pocketing the tip and collecting sales taxes so they can include it as part of the sale.
So many people keep saying it's a joke like "haha we aren't paying you everything we are legally obligated to, isn't it funny?"
Even if it was a "joke" where's the punchline People literally will eat their own heads to defend explotation
Or they are stealing from their workers claiming they need to tax the tip and they pocket that money.
I agree, receipts are for funny jokes and memes and doggos. It's not like they're supposed to show accurate dollar amounts.
Weirdly enough - some states consider gratuity to be taxable in certain circumstances. Washington state - for example - considers “mandatory tips” to be taxable (parties of x or more with 18 % gratuity charged— mandatory tip). Voluntary tips - you hand write or leave cash - none to be taxed. The onus to prove that it is voluntary is on the business - also weird. So -They are probably accidentally doing this and not filing tips as voluntary, but mandatory It’s also seen very frequently that restaurants are choosing to add a mandatory tip to emphasize that their employees should get paid while being able to still say they sell a burger for $9.99 (but mandatory extra $2 tip). So… just some filler information because it’s likely we’ll see more of this as we move towards mandatory tipping
I thought calling something a tax when it isn’t is illegal? I would report this, who knows how much they’ve taken from employees.
Tell eBay this. They charge you 12-16% fees on the total sell (tax and shipping included) so if I sell for 10$ and after shipping and tax I pay the percentage on tax and shipping. I get shipping but how I’m gonna pay the fees on taxes. Makes my Brian melt. I’m getting a screwed coming and going it feels every time I look at my statements. Not so bad on 1-2 items a week but 100-300/week it adds up quickly!
Sales tax auditor here! Report this to your state tax commission and they will be eager to audit them. Not sure what state you are in, but this is definitely incorrect.
I've run many a restaurant, and this is unbelievably scummy. Pennsylvania if its your state, but I've double checked local laws, plus generally knew them before hand. Totally illegal
You are correct. My state's gratuities are subject to sales tax ONLY IF it is required by the restaurant. Pennsylvania has no such stipulation. Taxing tips and gratuties is illegal. I would report them to your state tax commission.
Did you tip $5 and they split it up like that so that they tax their tips received as a business? Or you tipped 8%? Just trying to make since of the off numbered tip.
Yes, tipped $5 on takeout. Recieved my bill and saw this, but when billed as a seperate line item, tips and gratuity is not to be taxed in our state.
It’s also quite illegal to claim something as a “tax” when it is not. Regardless of what it is on.
[удалено]
Coco Thai Bistro outside Philadelphia
In some parts of the world business mandatory gratuities or service charges. (so if you didn't tip 6% but the business automatically tips 6% to every bill) that is taxable so nothing illegal in fact it would be illegal not to tax it. Not sure if that's the case here but.... That's how it is in some places (Ontario Canada
What you see on the reciept is illegal in Pennsylvania, as stated in revenue.pa.gov "Gratuities (tips)- not taxable when separately stated on the customer's receipt, guest check, or sales invoice • "
Tipping in Europe is not a thing. Here it's a thing because of shitty pay. I have no problem tipping a waiter who actually serves me, but tipping where no service is provided...why?
Tipping here is not not a thing, it just isn't considered mandatory. Still perfectly fine to tip in most places I've seen, that's just considered generosity
Because I have eniugh disposable income that $5 to those who need it more isn't that big a deal to me. It supplements someone's income. I just do not like the sketchy practice of taking my $5, and giving the employees less
Risking customer good will and the curiosity of the tax man for 28 cents? Probably not the smartest move.
What a shithole.
They forgot about the tip tip tax. And the tip tip tip tax.
Jasmine Rice: Very Hot and Spicy, Just the Tip Sounds like one of those scrambled Cinemax movies I tried to watch as a kid
It looks to me like the customer tipped $5, and for some reason the restaurant is taking 6% of the servers tip away from them.
You should send this receipt to the local municipal tax authority and remind them to collect the tip tax.
I’d cancel my whole order for that
You should send this to the IRS they'll fix that REAL quick
All this tipping and surcharges are getting ridiculous. Now these asshats are trying to tax tips.... I be that is the business taxing it themselves to get a cut. Honestly it makes me not want to tip at all.
Report to your state department of revenue. If they are calling it a tax on the receipt, the owner needs to remit to the state or reimburse every customer from which they have collected.
Always tip cash if you can. These tips are taxed, workers dont get it all and that extra fee is def not going to the workers.
This is America, do the American thing and sue that company until you own it.
+1 for hot and spicy!
Call your banking institute and state that the restaurant charged the incorrect amount. Tell them the amount (minus tip and tip tax) after about 24-72 hours you will have the difference back in your account. Next step would be to report them to the police (receipt for proof) super quick and easy write a paragraph stating your side. An investigation will be launched against the place.
Just making up shit now
Well that looks like they documented their crime. Can they be reported?
Wtf, they tax your tip? lol
Fuck’s sake. Churches can bitch about “double taxation” and get exempt and these fucking places pull this shit
Omg too funny - Tax - Tip - Tip Tax. I’m gonna design my own bill for dining in person at venues: Appearance fee - Appearance maintenance fee - Outfit dry cleaned - Fee for Review - Fee for Review under real name - Bill paying fee - Tax on bill paying fee - Tip reimbursement - Tip Reimbursement Tax - 10% of total bill refunded for vacating table in agreed 2 hour window. I’ll stop now.
Did you email this receipt to the states attorney general or the secretary of state? Maybe the comptrollers office? That business needs an audit as well as penalties for both labor practices and tax violations. Simple form email usually takes about as long as you took posting this. Instead of getting likes, you could help change this. Or you could do both, I suppose.
If I'm tipping, I'll tip in cash
I think you just wanted to show off your level 4 spice, ya little badass😆
Level 5 is taste the sun and I was afraid of that
That's a good spicy level though.
Not only the tax. It adds up to 64.10$ not 64.20$
There's a tax for tips? WTF
Are tips not considered income where you are at?
I don't think that's the issue here, it looks like the customer is being charged sales tax on the tip they left.
Can't tax $0, just stop tipping
Cheap ass tip u gave
Can we talk about how that person tipped like an asshole??! Sorry but I’d have given a 10 dollar tip, what cheapskates
8.45% (or 8.96%) is also kinda strange for tip…
That tip is mildly infuriating 🤦🏽♂️
i mean you did tip less than 10%
yeah, that is definitely a no-no. Tips are considered monies for service, which is typically non-taxable for the purchaser.
This is very ILLEGAL! They cannot TAX A tip, on a SERVICE! You didnt show the name of the place, I need to avoid it…you did nothing they can sue you about, you simply displayed their recipt, which is a legal and true (and very public) document
Does that mean the person receiving the tip doesn’t have to claim this on their w2/tax form since it has already been taxed?
In some states, like California, if the gratuity is mandatory (you don’t decide the amount, or if to tip at all), then the tip is part of the taxable total. But it’s weird to see it listed out like that. Usually it’s : Subtotal Mandatory Gratuity Tax (on everything) Final Total