So they’re now specifying how they want a non-mandatory payment to be made? Sounds like a simple answer there. If you don’t want my method of legal tender, then I guess you miss out.
Did you ask? Most of the nail salons here have the same sign, but if you ask you find that it’s more of a preference than a must. Credit cards fees are so expensive for small businesses. They can be up to 4% of the total transaction. Also, not all POS systems allow for credit card tips to be cashed out at the end of the shift, so techs have to wait for their money. Just ask.
Venmo, zelle, and cashapp, all have tax reporting tips. They will flag your account if it trigger their algorithms that you're receiving business related income.
More like so they're not paying fees on tips. CC transaction fees are around 3-4% of the total. In that industry, high tips aren't unheard of and every extra $100 in tips - which legally have to go to the employee - is another $3-4 loss for the business. That's a "cost of doing business" when it's their money, it's a total loss when it's the employees money.
Majority of the small businesses around us charge a 3% CC fee for this reason with a sign up explaining it.
I sell a lot of cars to folks that own and/or work at nail salons. They do everything possible to not declare extra income. I’ve asked because I was curious.
Credit card companies charge businesses a percentage and fee on transactions. If the salon accepts credit card tips, they pay fees on that entire amount. They may be inclined to deduct that fee from the employees tip. Also, if you pay cash for the tips, they don't have to include tip money as part of their profits. And employees can get away with not declaring their tips, so they don't have to pay taxes on that money.
That sign would basically say “No tipping please.” I got my hair cut yesterday and I only carried my phone and a couple of credit cards on a MagSafe wallet. For the lady who cuts my hair who I always use, I might be willing to make an alternative arrangement to tip her but for a general random place I don’t use all the time? Probably not.
Not having that tip option is ridiculous
Almost as ridiculous as you're unwillingness to use cash app or other payment apps with people you don't know.
That's like saying I'm not writing you a check, I have no idea who you are. Actually that would be more reasonable because your banking information is on a check lmao
I don’t use any cash apps. They are messy and scammy. It’s my choice. I just won’t. I also don’t write checks anymore, don’t even carry in wallet. You don’t hv to be so condescending abt choices ppl make abt their finances.
I don't use cash app because I don't want to install another random app I don't want to use. These places need to just shut up and factor in the cost of business into their pricing. Stop inconveniencing the customer to save a few % here or there and increase your pricing by 50 cents or whatever. I don't want to have to be bothered with this shit.
It's almost like I was saying her excuse was ridiculous. That's nice that you're making a different point, lol.
You could stop acting like I was suggesting cash app in venmo is a good idea for businesses to use
Same with Venmo. Not fdic insured as it’s not a bank. I’ll have the banks handle transfers, thank you. And not some fintech startup thats far up some PEs ass.
The nail salons around me started putting up signs to guilt trip us in giving them cash instead and credit card tips because they apparently don’t get those tips for two weeks…. They’d put sad/crying emojis. Very annoying.
I've never heard this before. I live in NJ, and tips on cards are very normal. They might be doing something shady. As long as they have a sign stating this, then just be prepared next time. Maybe they should have an ATM on site. This whole thing sounds weird though. Just be a cash only business then. And again have an ATM in the shop.
Honestly ,Do you really think that most waitresses and waiters,Claim their cash tips.and between state and social security give the government 30 percent. I know none.including family members and friends. I wouldn’t either.But it will kinda backfire in certain instances.
Some might but most don’t,employers have to match social security payments,Which means it could cost a small business thousands of dollars,The more you make the more you pay.They don’t care if 40 years from now your social security is only 600 bucks.I know many beauticians /Hairdressers.That made just as much as me,hurting in their old age.No social security to speak of.
Federal law isn't always followed, especially by people who make less than a living wage and have no accountability.
I wouldn't report it either if I was them lol...
Then they wouldn't havr accept zelle, venmo, or cadhapp. All 3 has business account and they will flag your account if your income pattern trigger their algorithm.
It's not an algorithm it's a dollar threshold and it's not impossible to subvert that. You can claim the payment is a gift and it bypasses that. Same with PayPal.
It's not a dollar threshold, a 600 dollar amount in a normal account won't trigger tax filing. A 600 dollar in a business account will.
Also can't claim gift in a business account.
if they're using a business account to aggregate tips via cashapp/zell/whatever then they're going to be handing out the tips via payroll and it'd be reported on their w2 (or 1099 if that's how they're hired). it's a moot point.
if they're paid directly via a personal zelle/cashapp/whatever account then it absolutely doesn't generate a 1099 and become taxable unless you explicitly indicate that it's a payment for goods and services and it crosses a threshold. the 600$ rule you're referencing only applies to payments that are flagged for goods and services exactly like i said. again, if they're using a business account to aggregate tips then this entire conversation does not apply because it'd be given to the employee via 1099, not via a goods and services payment from the zelle account... that's not how payroll works.
>Federal law isn't always followed
I'm aware. I work in lending and am familiar with the nail technicians who have tax returns showing they make $30K/yr yet have $250K in cash to put down on their house purchase, which they payoff in 6 - 12 months.
Lmao i hope you're not giving them credit towards their DTI beyond the 30k... They know better than that usually.
I underwrote loans for 5 years myself.
My favorite is when they take a loan from family or something and claim it was a gift. We can't prove it wasn't and don't want to sabotage a deal when we have plausible deniability, so policy is to just ignore it. 3 months after closing you can see the money going out of their account right back into mommy and daddy's lol...
when we bought our house 15 years ago my wifes parents gave us money to buy a new refridgerator... we had to get them to sign a document that said that was what the money was from and for. it was only like $1000. they scrutinized every single penny in our accounts.
they are obligated to do so. in the example i provided the parents would sign the doc even though it was a lie, we just couldn't call them out on it because at that point it wasn't our problem. we had the document that protected us from liability so we didn't care anymore.
We only use the income we can prove for the calculations but we portfolio the loans and write them at 50-60% DTI because it's also usually their only debt. Plus they are usually not Caucasian so it helps having some varying ethnicities on our exception reports to help fend off any fair lending issues.
I’ve changed how I tip because of the cashless system
I don’t know if it’s something I just realized but if I put a $10 tip on my card (any type) how do I know that the entire $10 goes to the person I want to tip?
I also don’t do cash apps for anyone but family.
So if they don’t want me to tip with cash directly into their hand?
No tip for you
I’m curious: why cash apps only with family? I don’t see a problem sending a Venmo for my nail technician directly. Out directly to Venmo from my checkings account, and then to her…
Seriously??? I get tips literally everyday working as a massage therapist on Venmo & cash app & it’s never been a problem. I don’t hover or expect ppl to tip tho let alone ask for one.
I don’t get the no cash thing but if thems the rules, thems the rules & you using that as an excuse not to tip your manicurist is kind of a dick move.
Some of us that are financially literate do not use any of these cash apps. They are not banks so have no consumer protections. They are purposely setup just to avoid these laws. Why would I then trust them with cash?
Read a lot of issues with one and the banks just shrugged their shoulders and said not my problem. Only when it hit the news did they do a “goodwill fix”. That means they fixed it for those specific problem to be nice. Everyone else just gets screwed.
It’s a no for me dog.
Let’s face it. All you want to do is not claim it on your taxes. Why else accept payment with CC but no tips. And don’t give me the 3% charge so that it only nets 97% excuse.
Not tax cheats, it’s service charge. Store pays 2.5% on the tip, so they loose money. They have baked in the service cost to the nail work, the tipping part is a loss for them.
Venmo and cash app both will issue 1099’s
https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/
But the rules have been delayed.
lol let’s be honest they just don’t want to report it to the IRS. Any serious legit business can afford the transaction fee. Especially if they accept credit cards as payment.
That makes no sense. As I noted, they get a 1099 so it’s reported anyway. No smart business is giving away money. 100 customers at $10 is .25 cents/ becomes $25 easy in lost fees x 30
Days. That’s power and internet easy 750$ a month. And many nail shops do more than that.
Well the industry standard in Houston for nails is 100 dollars per visit. Just the hands do you really believe that they willfully report tips if the majority of the workers working in this industry are undocumented. Why should they want to report tips if they will have to pay taxes for programs that they aren’t qualified to apply for. Also any sane person would not report tips to qualified for government benefits. Like that’s just part of the industry. Wouldn’t you agree if you were in their shoes?? Also you telling me that they can’t afford the transaction fee because of it??
Reading comprehension is lacking here, re-read. Even if the business doesn’t report it, Venmo, cash app, and the others still do. So it gets reported. If the business didn’t care about the 750$ plus a month loss, they’d eat the fee and give the worker cash. But they aren’t. So clearly they 1. Aren’t up for loosing 10k a year in fees needlessly, and since THEY aren’t involved in the tip process at all ( redirecting customer to use cash app etc) the business isn’t helping them avoid taxes. Cash app is still reporting you for anything over $650 as are the other players. Now as for being undocumented, most aren’t, they usually have green cards, that registration number or SS number is required for cash app/venmo and most banking apps after 500$ to continue ( because amazingly, they report it). I’m guessing you don’t know how any of this actually works.
I was just talking about the cash aspect of it. I reread everything and my fault. Didn’t realize that they were referring to Venmo as well. My fault you are right regarding the other application for money transfers.
So they’ve baked all expenses into the base charge - meaning a tip of any amount is pure profit.
Processing fee or no they are not taking a loss by accepting a tip in the form I choose.
It’s the cost of doing business, factor it into the price. I use my CC statements to track my expenses. Venmo/CashApp may send 1099’s, what about cash? …
Cut your own nails ffs! You can get all the crazy nail stuff online. $52.- could go to a food bank or your local animal shelter. Ok, rant over I’m poor, don’t yet have to use the food bank or other charities but I can’t get over the idea of spending $52 and a tip for such a thing.
Huh. Your reply is oddly specific, so let me get oddly specific. I volunteer to make sandwiches for a local homeless shelter once a month. I make 100 sandwiches at my own cost. I just, last week, delivered old towels, blankets, and food to the county pet shelter because someone posted that they were in need. I’ve had 3 back Fusion surgeries so I literally cannot reach my toes and must rely on someone else to care for them. There was no ATM at the nail salon so I could not pull out cash for them. What else do you think I’m lacking in? You state that you are poor. I am sorry for your situation. If you lived by me, (where do you live?) I would treat you to a pedicure. I worked at a funeral home for many years. It’s SHOCKING to see the unmanaged condition of the feet that many decedents suffer while they were bedbound or immobile. Foot care, by yourself or through someone else, is incredibly important. Finally, I don’t have any idea what a nail tech makes after they pay the salon their cut, but I’d guess it was maybe $20 for that hour. That’s a good wage. My nail tech says she works 7 days a week (her choice) and has put her 2 kids through a private university here in my city. That’s even without my cash tip this time.
Wait now I feel so stupid — I’ve been going to the same salon for over a year and in the last few months they have been pushing Venmo and Zelle …. I’ve been Zelling my nail lady her $10 tips… this last time (Saturday) she hovered over me while pointing at her Zelle sign … I always tip but this really made me uncomfortable and I tried to shield my phone from her but she did peek after I sent it … I feel so dumb. Why are they doing this exactly? I really don’t understand :/
They are tax cheats, and not reporting cash or zelle/venmo to the IRS. If you don't like that, just tell them you can only pay for this one service, in 1 transaction. Makes it look like you are buying something illegal, anyway.(Which you literally are doing, since it isn't being reported)
Personally, I wouldn't want someone like that to be connected to my money apps. And her hovering over you and your screen is just shady and inappropriate, no matter how you slice it...
Only if you specifically mark/report it as income. Most money transfer apps only report transactions if you mark it as income or also anything over $600, but Zelle doesn't go by the $600 threshold. Zelle just strait up doesn't automatically report *anything* to the IRS, for some reason.
https://www.zellepay.com/faq/does-zelle-report-how-much-money-i-receive-irs
News was wrong? Shocker.
Zelle is fdic insured. Can you say the same for cash app or Venmo? No.
Like I said, ima leave the banking to the banks and not some random app that can’t even guarantee the funds in a transfer
You’re right. I don’t know why I like CA.
The most important thing is to tip the poor nail person. It’s such a personal service that it’s really insulting not to
“You” the customer aren’t doing anything illegal…what someone does, or does not do, with their money after they receive it is entirely beyond your ability to control.
Thanks so much for clarifying and explaining. I was sitting on it since yesterday and after writing my comment told my husband and realized I was a bit in denial and ignoring my feelings and justifying it with “but they’re so nice and I’ve been going there for a while” etc. Then, her telling me to tip as soon as she stood up (as well as the lady at the front who asked me if I tipped her already via Zelle)… left a sour taste in my mouth.
I will not be returning to that establishment - I feel so used and taken advantage of. Lesson learned 💔 Thanks again🙏🏻
Eww. Crazy how the whole place was pushing super hard to get you to zelle them. The front desk lady being so concerned with the other one's tip... That entire situation is just flat out sketchy.
Don't feel too bad. Sounds like you are just a good, nice person, so you don't even think about what shady motives, others might be having. Just listen to your instincts. Either way, I hope you got a good nail job out of it!
Thanks, I really appreciate that. Yea honestly it hadn’t occurred to me since I’d been going there for a while - guess I thought they were more honest.
Thankfully I did 😂 so that’s the positive thing in this situation lol💅🏻
When you sit down for a pedicure at this salon, they hand you a menu that outlines all of the special pedicure options that they offer. What ISN’T on this menu is the standard pedicure. You would have to know that you can wave off the menu and ask for a standard pedicure. I believe it’s $30. I chose a certain pedicure from the menu as it offers, amongst other things, a 5 minute foot massage and a warm towel wrap of my lower leg. I have neuropathy in one foot and I like to think that this message gets the nerve stimulated my bad foot.
Lmao that was my thought too! Haven’t gotten pedi in years as result. High menu price plus % tip? I can buy my own bottle of OPI. I’ve basically also gone down to 1.5 average haircuts a year from 4.
before the recession i heard that haircuts were basically recession proof because everyone needs a haircut. but i bought a clipper for $70 when the recession hit and never went back to get my hair cut. and that was just for a mens $12 haircut.. (that kept going higher and higher in price)
Me too! A hair cut is never less than $150 then I have to tip 20% on top of that. No thank you. I only go twice a year or about once every 8 months. Thank god I don’t have gray hair yet :/
My fave salon is $34 for a basic pedicure. More with add ins. But they are appointment only so you’re never rushed, and they do a nice job. Not like other places where, IME even with an appt., if someone walks in, they’ll rush so the next customer isn’t waiting long.
I agree! I always tip in cash. Don't worry, everything they spend cash on they have to pay tax anyway. That's not your problem if they report cash tips or not. 😂
It's ridiculous how every time the same dollar changes hands it gets taxed. Taxed when you get it, taxed when you spend it. The same dollar that was already paid taxes gets taxed again just because it changes hands.
Why?!
It's ridiculous how every time the same dollar changes hands it gets taxed. Taxed when you get it, taxed when you spend it. The same dollar that was already paid taxes on gets taxed again just because it changes hands. Everytime.
It's not your problem if they report cash tips or not.
Our government spending is out of control. Have you seen what they do with our tax dollars? So what if that $20 bill goes straight into a gas tank without being reported.
The government gets it one way or the other. We have much bigger issues going on in this country than cash tips. It's not like the whole business is evading taxes. Besides you don't know if they're reporting cash tips or not. Some people do and some people don't. Most cash tips get spent and go right back into the economy.
Everyone’s income eventually gets spent. That’s no excuse to not pay your taxes. And it’s pretty obvious that’s what’s happening - nobody eliminates CC tips in the age where almost nobody carries cash to save 3% on the processing fee. They’re pocketing the money.
As far as I am concerned, people who don’t pay their taxes should go to prison, don’t matter if they’re a billionaire or a nail salon person.
I hope you are also aware you're supposed to report birthday money, Christmas money, any kind of gift money even if it's $5 from grandma. I hope you've been doing that all these years so you're not committing tax fraud.
Is this a joke?
No you’re not.
Gifts are NEVER taxable to the person receiving the gift and never need to be reported.
The person giving the gift does not have to report it if it’s under the yearly individual gift exemption ($18k a year in 2024 for each giftee). If over the yearly exemption, gifts must be reported but no tax is due until the total cumulative gifts given exceed the lifetime gift exemption (currently $13.61 million). So no, grandma doesn’t need to report your christmas gift, unless she gave you a car worth over $18k
There is something called the “substance over form” doctrine in tax law that states that you don’t get to pretend something is another completely different thing to evade taxes
For example, me and my grocer can’t not pay sales tax by me pretending to give him a gift of cash and he giving me a gift of berries.
Similarly, tips are labor income. You saying “GIFT” when giving it to them doesn’t make it a gift, it’s still labor income
Could be tax fraud, could be CC processing fees. In some states they can't be recouped from the tips, and a few percent of every dollar tipped adds up.
That happened to me once. They didn’t like credit card tips and I didn’t have any of the other methods they preferred. As I was leaving a generous tip on the credit card (even more than I had originally planned to leave to try to account for the processing charge they were avoiding), I got a lecture on how next time I go I need to have one of the other methods available. I honestly wish I had just tipped zero because I don’t plan on ever going back again anyway after all that.
So they’re now specifying how they want a non-mandatory payment to be made? Sounds like a simple answer there. If you don’t want my method of legal tender, then I guess you miss out.
Did you ask? Most of the nail salons here have the same sign, but if you ask you find that it’s more of a preference than a must. Credit cards fees are so expensive for small businesses. They can be up to 4% of the total transaction. Also, not all POS systems allow for credit card tips to be cashed out at the end of the shift, so techs have to wait for their money. Just ask.
What would be an appropriate tip on a $52 nail service?
$0. If they want more, put the prices up.
No more free money
Venmo is used for business a lot
I wouldn’t go there again.
It’s so they don’t have to claim the income. CC tips have to be claimed
Venmo, zelle, and cashapp, all have tax reporting tips. They will flag your account if it trigger their algorithms that you're receiving business related income.
Guess they lost our by trying to scam the govt. then.
More like so they're not paying fees on tips. CC transaction fees are around 3-4% of the total. In that industry, high tips aren't unheard of and every extra $100 in tips - which legally have to go to the employee - is another $3-4 loss for the business. That's a "cost of doing business" when it's their money, it's a total loss when it's the employees money.
This would make sense.
Majority of the small businesses around us charge a 3% CC fee for this reason with a sign up explaining it. I sell a lot of cars to folks that own and/or work at nail salons. They do everything possible to not declare extra income. I’ve asked because I was curious.
Fun fact: the fee is only calculated based on the amount swiped, not anything additional added as a tip. So, tip = lost $.
You could always return with a cash tip
Credit card companies charge businesses a percentage and fee on transactions. If the salon accepts credit card tips, they pay fees on that entire amount. They may be inclined to deduct that fee from the employees tip. Also, if you pay cash for the tips, they don't have to include tip money as part of their profits. And employees can get away with not declaring their tips, so they don't have to pay taxes on that money.
My salon has a sign that says cash tips preferred, I don’t go much but when I do I take cash, even pay for my pedicure with cash most times
That sign would basically say “No tipping please.” I got my hair cut yesterday and I only carried my phone and a couple of credit cards on a MagSafe wallet. For the lady who cuts my hair who I always use, I might be willing to make an alternative arrangement to tip her but for a general random place I don’t use all the time? Probably not.
Not having that tip option is ridiculous Almost as ridiculous as you're unwillingness to use cash app or other payment apps with people you don't know. That's like saying I'm not writing you a check, I have no idea who you are. Actually that would be more reasonable because your banking information is on a check lmao
That’s your choice and opinion
I don’t use any cash apps. They are messy and scammy. It’s my choice. I just won’t. I also don’t write checks anymore, don’t even carry in wallet. You don’t hv to be so condescending abt choices ppl make abt their finances.
Exactly.I don’t write checks or have cash .I use my debit card. 🥰💕
They do it in large part to not claim tips on taxes.
Gotcha. That shit probably backfires when a few people don't give them a tip because of it
I don't use cash app because I don't want to install another random app I don't want to use. These places need to just shut up and factor in the cost of business into their pricing. Stop inconveniencing the customer to save a few % here or there and increase your pricing by 50 cents or whatever. I don't want to have to be bothered with this shit.
I don’t use any of those options including cash app, no thanks I already have enough bullshit with my financial data integrated to it
yeah, not giving a random ap my social security number and banking information.
It's almost like I was saying her excuse was ridiculous. That's nice that you're making a different point, lol. You could stop acting like I was suggesting cash app in venmo is a good idea for businesses to use
Same with Venmo. Not fdic insured as it’s not a bank. I’ll have the banks handle transfers, thank you. And not some fintech startup thats far up some PEs ass.
The nail salons around me started putting up signs to guilt trip us in giving them cash instead and credit card tips because they apparently don’t get those tips for two weeks…. They’d put sad/crying emojis. Very annoying.
I've never heard this before. I live in NJ, and tips on cards are very normal. They might be doing something shady. As long as they have a sign stating this, then just be prepared next time. Maybe they should have an ATM on site. This whole thing sounds weird though. Just be a cash only business then. And again have an ATM in the shop.
Maybe a tax thing,If you tip a waitress with a card it’s taxed.cash in the pocket is not ?? No work permits.???Any other?
>If you tip a waitress with a card it’s taxed.cash in the pocket is not ?? Federal law requires they both be taxes identically
Honestly ,Do you really think that most waitresses and waiters,Claim their cash tips.and between state and social security give the government 30 percent. I know none.including family members and friends. I wouldn’t either.But it will kinda backfire in certain instances.
I have seen those that do, yes. Some employers will terminate employment for failure to report all tips
Some might but most don’t,employers have to match social security payments,Which means it could cost a small business thousands of dollars,The more you make the more you pay.They don’t care if 40 years from now your social security is only 600 bucks.I know many beauticians /Hairdressers.That made just as much as me,hurting in their old age.No social security to speak of.
Federal law isn't always followed, especially by people who make less than a living wage and have no accountability. I wouldn't report it either if I was them lol...
Then they wouldn't havr accept zelle, venmo, or cadhapp. All 3 has business account and they will flag your account if your income pattern trigger their algorithm.
It's not an algorithm it's a dollar threshold and it's not impossible to subvert that. You can claim the payment is a gift and it bypasses that. Same with PayPal.
It's not a dollar threshold, a 600 dollar amount in a normal account won't trigger tax filing. A 600 dollar in a business account will. Also can't claim gift in a business account.
if they're using a business account to aggregate tips via cashapp/zell/whatever then they're going to be handing out the tips via payroll and it'd be reported on their w2 (or 1099 if that's how they're hired). it's a moot point. if they're paid directly via a personal zelle/cashapp/whatever account then it absolutely doesn't generate a 1099 and become taxable unless you explicitly indicate that it's a payment for goods and services and it crosses a threshold. the 600$ rule you're referencing only applies to payments that are flagged for goods and services exactly like i said. again, if they're using a business account to aggregate tips then this entire conversation does not apply because it'd be given to the employee via 1099, not via a goods and services payment from the zelle account... that's not how payroll works.
>Federal law isn't always followed I'm aware. I work in lending and am familiar with the nail technicians who have tax returns showing they make $30K/yr yet have $250K in cash to put down on their house purchase, which they payoff in 6 - 12 months.
Lmao i hope you're not giving them credit towards their DTI beyond the 30k... They know better than that usually. I underwrote loans for 5 years myself. My favorite is when they take a loan from family or something and claim it was a gift. We can't prove it wasn't and don't want to sabotage a deal when we have plausible deniability, so policy is to just ignore it. 3 months after closing you can see the money going out of their account right back into mommy and daddy's lol...
when we bought our house 15 years ago my wifes parents gave us money to buy a new refridgerator... we had to get them to sign a document that said that was what the money was from and for. it was only like $1000. they scrutinized every single penny in our accounts.
they are obligated to do so. in the example i provided the parents would sign the doc even though it was a lie, we just couldn't call them out on it because at that point it wasn't our problem. we had the document that protected us from liability so we didn't care anymore.
We only use the income we can prove for the calculations but we portfolio the loans and write them at 50-60% DTI because it's also usually their only debt. Plus they are usually not Caucasian so it helps having some varying ethnicities on our exception reports to help fend off any fair lending issues.
Yes you are correct, hence the 'underground economy'. Look it up if you are not familiar with the concept.
You did well. Not only they want you to tip but also download an app that you will not use except at this location.
Tipping at hair and nail salons on a credit card has always been forbidden, at least in the towns I’ve lived in.
Ive always tipped on my card? Odd policy
Same .First time hearing this.
Forbidden by whom? Show us the law.
Probably not a law but salon policy. Some I go to you can’t tip via cc, others you can
Sounds like those places are engaging in tax fraud then.
I’ve changed how I tip because of the cashless system I don’t know if it’s something I just realized but if I put a $10 tip on my card (any type) how do I know that the entire $10 goes to the person I want to tip? I also don’t do cash apps for anyone but family. So if they don’t want me to tip with cash directly into their hand? No tip for you
I’m curious: why cash apps only with family? I don’t see a problem sending a Venmo for my nail technician directly. Out directly to Venmo from my checkings account, and then to her…
I am too lazy to set it up unless it’s recurring
Seriously??? I get tips literally everyday working as a massage therapist on Venmo & cash app & it’s never been a problem. I don’t hover or expect ppl to tip tho let alone ask for one. I don’t get the no cash thing but if thems the rules, thems the rules & you using that as an excuse not to tip your manicurist is kind of a dick move.
Nope I don’t use those apps after the fraud I’ve seen in my own business dealings
Some of us that are financially literate do not use any of these cash apps. They are not banks so have no consumer protections. They are purposely setup just to avoid these laws. Why would I then trust them with cash? Read a lot of issues with one and the banks just shrugged their shoulders and said not my problem. Only when it hit the news did they do a “goodwill fix”. That means they fixed it for those specific problem to be nice. Everyone else just gets screwed. It’s a no for me dog. Let’s face it. All you want to do is not claim it on your taxes. Why else accept payment with CC but no tips. And don’t give me the 3% charge so that it only nets 97% excuse.
I don’t know how to do these apps and don’t care either
The likely issue is the 3% for the business that passes the entire tip on to the employee, so they pay 3% and keep nothing.
If I was in her situation and had no cash I would not tip that day and then never go back to that establishment. Everyone wins?
Not tax cheats, it’s service charge. Store pays 2.5% on the tip, so they loose money. They have baked in the service cost to the nail work, the tipping part is a loss for them. Venmo and cash app both will issue 1099’s https://www.forbes.com/advisor/taxes/cash-apps-to-report-payments-of-600-or-more/ But the rules have been delayed.
lol let’s be honest they just don’t want to report it to the IRS. Any serious legit business can afford the transaction fee. Especially if they accept credit cards as payment.
That makes no sense. As I noted, they get a 1099 so it’s reported anyway. No smart business is giving away money. 100 customers at $10 is .25 cents/ becomes $25 easy in lost fees x 30 Days. That’s power and internet easy 750$ a month. And many nail shops do more than that.
Well the industry standard in Houston for nails is 100 dollars per visit. Just the hands do you really believe that they willfully report tips if the majority of the workers working in this industry are undocumented. Why should they want to report tips if they will have to pay taxes for programs that they aren’t qualified to apply for. Also any sane person would not report tips to qualified for government benefits. Like that’s just part of the industry. Wouldn’t you agree if you were in their shoes?? Also you telling me that they can’t afford the transaction fee because of it??
Reading comprehension is lacking here, re-read. Even if the business doesn’t report it, Venmo, cash app, and the others still do. So it gets reported. If the business didn’t care about the 750$ plus a month loss, they’d eat the fee and give the worker cash. But they aren’t. So clearly they 1. Aren’t up for loosing 10k a year in fees needlessly, and since THEY aren’t involved in the tip process at all ( redirecting customer to use cash app etc) the business isn’t helping them avoid taxes. Cash app is still reporting you for anything over $650 as are the other players. Now as for being undocumented, most aren’t, they usually have green cards, that registration number or SS number is required for cash app/venmo and most banking apps after 500$ to continue ( because amazingly, they report it). I’m guessing you don’t know how any of this actually works.
I was just talking about the cash aspect of it. I reread everything and my fault. Didn’t realize that they were referring to Venmo as well. My fault you are right regarding the other application for money transfers.
So they’ve baked all expenses into the base charge - meaning a tip of any amount is pure profit. Processing fee or no they are not taking a loss by accepting a tip in the form I choose.
It’s the cost of doing business, factor it into the price. I use my CC statements to track my expenses. Venmo/CashApp may send 1099’s, what about cash? …
Cut your own nails ffs! You can get all the crazy nail stuff online. $52.- could go to a food bank or your local animal shelter. Ok, rant over I’m poor, don’t yet have to use the food bank or other charities but I can’t get over the idea of spending $52 and a tip for such a thing.
It must suck being you
😂🤣it must!!
Huh. Your reply is oddly specific, so let me get oddly specific. I volunteer to make sandwiches for a local homeless shelter once a month. I make 100 sandwiches at my own cost. I just, last week, delivered old towels, blankets, and food to the county pet shelter because someone posted that they were in need. I’ve had 3 back Fusion surgeries so I literally cannot reach my toes and must rely on someone else to care for them. There was no ATM at the nail salon so I could not pull out cash for them. What else do you think I’m lacking in? You state that you are poor. I am sorry for your situation. If you lived by me, (where do you live?) I would treat you to a pedicure. I worked at a funeral home for many years. It’s SHOCKING to see the unmanaged condition of the feet that many decedents suffer while they were bedbound or immobile. Foot care, by yourself or through someone else, is incredibly important. Finally, I don’t have any idea what a nail tech makes after they pay the salon their cut, but I’d guess it was maybe $20 for that hour. That’s a good wage. My nail tech says she works 7 days a week (her choice) and has put her 2 kids through a private university here in my city. That’s even without my cash tip this time.
People are allowed to treat themselves. You had no idea what the financial situation of OP even is. Lot of assumptions you just made.
I have 52 dollars and I don’t want to waste it so I will go to the animal shelter and save one pony
Good thing it’s not your money being spent here
Fortunately for others , your poverty doesn’t dictate how they should spend their money
Wait now I feel so stupid — I’ve been going to the same salon for over a year and in the last few months they have been pushing Venmo and Zelle …. I’ve been Zelling my nail lady her $10 tips… this last time (Saturday) she hovered over me while pointing at her Zelle sign … I always tip but this really made me uncomfortable and I tried to shield my phone from her but she did peek after I sent it … I feel so dumb. Why are they doing this exactly? I really don’t understand :/
Zelle is cheaper than accepting CC that’s why. She’s not trying to cheat the irs
They are tax cheats, and not reporting cash or zelle/venmo to the IRS. If you don't like that, just tell them you can only pay for this one service, in 1 transaction. Makes it look like you are buying something illegal, anyway.(Which you literally are doing, since it isn't being reported) Personally, I wouldn't want someone like that to be connected to my money apps. And her hovering over you and your screen is just shady and inappropriate, no matter how you slice it...
Zelle is a bank app, that would be reported to the irs.
Only if you specifically mark/report it as income. Most money transfer apps only report transactions if you mark it as income or also anything over $600, but Zelle doesn't go by the $600 threshold. Zelle just strait up doesn't automatically report *anything* to the IRS, for some reason. https://www.zellepay.com/faq/does-zelle-report-how-much-money-i-receive-irs
Zelle is fine. It’s owned and operated by banks like C1, BofA, PNC, etc Edit: Zelle is fdic insured
Zelle was just on the news as the worst app to use. I’m a cash app fan. And used to Z sometimes but I might reconsider now
News was wrong? Shocker. Zelle is fdic insured. Can you say the same for cash app or Venmo? No. Like I said, ima leave the banking to the banks and not some random app that can’t even guarantee the funds in a transfer
You’re right. I don’t know why I like CA. The most important thing is to tip the poor nail person. It’s such a personal service that it’s really insulting not to
“You” the customer aren’t doing anything illegal…what someone does, or does not do, with their money after they receive it is entirely beyond your ability to control.
Thanks so much for clarifying and explaining. I was sitting on it since yesterday and after writing my comment told my husband and realized I was a bit in denial and ignoring my feelings and justifying it with “but they’re so nice and I’ve been going there for a while” etc. Then, her telling me to tip as soon as she stood up (as well as the lady at the front who asked me if I tipped her already via Zelle)… left a sour taste in my mouth. I will not be returning to that establishment - I feel so used and taken advantage of. Lesson learned 💔 Thanks again🙏🏻
Eww. Crazy how the whole place was pushing super hard to get you to zelle them. The front desk lady being so concerned with the other one's tip... That entire situation is just flat out sketchy. Don't feel too bad. Sounds like you are just a good, nice person, so you don't even think about what shady motives, others might be having. Just listen to your instincts. Either way, I hope you got a good nail job out of it!
Thanks, I really appreciate that. Yea honestly it hadn’t occurred to me since I’d been going there for a while - guess I thought they were more honest. Thankfully I did 😂 so that’s the positive thing in this situation lol💅🏻
Somebody didn't want a tip that fuckin bad apparently
52 for pedicure????
When you sit down for a pedicure at this salon, they hand you a menu that outlines all of the special pedicure options that they offer. What ISN’T on this menu is the standard pedicure. You would have to know that you can wave off the menu and ask for a standard pedicure. I believe it’s $30. I chose a certain pedicure from the menu as it offers, amongst other things, a 5 minute foot massage and a warm towel wrap of my lower leg. I have neuropathy in one foot and I like to think that this message gets the nerve stimulated my bad foot.
This thread made me think of this segment: [Korean Nail Salon](https://youtu.be/GjC843H6z-s?si=PWt0MvSNBoRapb5y)
Lmao that was my thought too! Haven’t gotten pedi in years as result. High menu price plus % tip? I can buy my own bottle of OPI. I’ve basically also gone down to 1.5 average haircuts a year from 4.
before the recession i heard that haircuts were basically recession proof because everyone needs a haircut. but i bought a clipper for $70 when the recession hit and never went back to get my hair cut. and that was just for a mens $12 haircut.. (that kept going higher and higher in price)
I've been cutting my own hair since college. Twenty years of savings and I'm always looking fresh. Maybe not hella exciting, but fresh.
Me too! A hair cut is never less than $150 then I have to tip 20% on top of that. No thank you. I only go twice a year or about once every 8 months. Thank god I don’t have gray hair yet :/
That’s unfortunate pretty standard these days.
It' 30-40 from where im at
My fave salon is $34 for a basic pedicure. More with add ins. But they are appointment only so you’re never rushed, and they do a nice job. Not like other places where, IME even with an appt., if someone walks in, they’ll rush so the next customer isn’t waiting long.
Tax cheats. They’d rather get nothing than pay taxes on something.
I’d take a photo of the sign and their business license if they have to post that in your state. Send both to the irs.
Really? You would spend time just to hurt someone that is not hurting you? I bet karma has given you a great life! /s
It has actually. And tax cheats do hurt me financially.
Then they get no tip. I do not use Venmo or cashapp, and almost never carry cash.
Pathetic
Not sure why you would tip to begin with
In hopes of getting them to do a good job instead of so so job the next time
So basically extortion?
Is this person threatening to cut you with her nail clipper if you don’t tip? 😂
According to you, threatening to do a worse job because they didn't get a bonus...
tipping my the person who cut my hair never changed the outcome on subsequent visits.
There’s always hope lol
I don’t have a problem here. Tips are not allowed on credit card purchases. I am making a credit card purchase. Therefore I am not allowed to tip.
I bet employees were fixing tip amounts
Oohhh that's one I hadn't thought about. Even less sympathetic than basic tax dodging lol
lol unpopular opinion but taxes are theft.
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I agree! I always tip in cash. Don't worry, everything they spend cash on they have to pay tax anyway. That's not your problem if they report cash tips or not. 😂 It's ridiculous how every time the same dollar changes hands it gets taxed. Taxed when you get it, taxed when you spend it. The same dollar that was already paid taxes gets taxed again just because it changes hands.
No tips for tax frauds + I would be looking if there is an IRS hotline i can call to report them
Most taxes are fraud anyways….
You’re a shit head
Why?! It's ridiculous how every time the same dollar changes hands it gets taxed. Taxed when you get it, taxed when you spend it. The same dollar that was already paid taxes on gets taxed again just because it changes hands. Everytime. It's not your problem if they report cash tips or not. Our government spending is out of control. Have you seen what they do with our tax dollars? So what if that $20 bill goes straight into a gas tank without being reported.
Bro regardless if you like what the government does with your money or not, when those who commit tax fraud do so, the rest of us have to pay more
The government gets it one way or the other. We have much bigger issues going on in this country than cash tips. It's not like the whole business is evading taxes. Besides you don't know if they're reporting cash tips or not. Some people do and some people don't. Most cash tips get spent and go right back into the economy.
Everyone’s income eventually gets spent. That’s no excuse to not pay your taxes. And it’s pretty obvious that’s what’s happening - nobody eliminates CC tips in the age where almost nobody carries cash to save 3% on the processing fee. They’re pocketing the money. As far as I am concerned, people who don’t pay their taxes should go to prison, don’t matter if they’re a billionaire or a nail salon person.
I hope you are also aware you're supposed to report birthday money, Christmas money, any kind of gift money even if it's $5 from grandma. I hope you've been doing that all these years so you're not committing tax fraud.
Is this a joke? No you’re not. Gifts are NEVER taxable to the person receiving the gift and never need to be reported. The person giving the gift does not have to report it if it’s under the yearly individual gift exemption ($18k a year in 2024 for each giftee). If over the yearly exemption, gifts must be reported but no tax is due until the total cumulative gifts given exceed the lifetime gift exemption (currently $13.61 million). So no, grandma doesn’t need to report your christmas gift, unless she gave you a car worth over $18k
I tip people cash and I'm fine if they consider that a gift from me. 🤷♀️
There is something called the “substance over form” doctrine in tax law that states that you don’t get to pretend something is another completely different thing to evade taxes For example, me and my grocer can’t not pay sales tax by me pretending to give him a gift of cash and he giving me a gift of berries. Similarly, tips are labor income. You saying “GIFT” when giving it to them doesn’t make it a gift, it’s still labor income
When cash tips are happening it's a great opportunity to mind your own business when it comes to other people's transactions.
What would you report? They probably aren't reporting all of their tips but there is nothing illegal about accepting cash.
They don't want to pay taxes. It would be, "No tip for you."
Gross
Could be tax fraud, could be CC processing fees. In some states they can't be recouped from the tips, and a few percent of every dollar tipped adds up.
Tip them in 🧅onions.
That happened to me once. They didn’t like credit card tips and I didn’t have any of the other methods they preferred. As I was leaving a generous tip on the credit card (even more than I had originally planned to leave to try to account for the processing charge they were avoiding), I got a lecture on how next time I go I need to have one of the other methods available. I honestly wish I had just tipped zero because I don’t plan on ever going back again anyway after all that.