Tipping on Carry Out
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Posted by Gunnar Emilsson (+13658) 6 years ago
METAIRIE, La. (AP) -- Drew Brees says he's amazed his $3 tip on a $74 takeout order last month has become a talking point on national television and the Internet.

The quarterback was in the locker room at Saints headquarters Thursday morning when he noticed a discussion on a network morning show about tipping on takeout orders, referencing a photograph of his takeout receipt that was circulated online.

Brees said he figures the person who initially photographed the receipt did so innocently because he visits the San Diego-area restaurant regularly and poses for photos with staff.

The quarterback said he was disappointed "that it actually got spun and perceived as - you immediately jump to the conclusion that he stiffed a waiter or waitress. That's the part that bothers me."

Brees responded to the blog himself on the social media site Twitter, writing, "In case anyone still cares about this report: I tipped $3 on a takeout order. Had we sat down it would have been 20% (plus)."


I consider myself a fairly good tipper (usually 20% sometimes more for exceptional service), but I never tip for carry out. Should I be leaving a extra buck when I drive through Taco John's on Taco Tuesday?
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Posted by Bridgier (+8278) 6 years ago
Tipping perpetuates wage theft.
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Posted by Wendy Wilson (+6167) 6 years ago
I think you are safe not tipping at drive throughs. But what about at those places where you order at the counter but the waitress brings the food to the table. Usually you've already paid at the counter. I guess you could leave cash on the table but I rarely have cash in my wallet these days. Sometimes these places have tip jars at the counter but why should I tip for service I haven't received yet?
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Posted by Richard Bonine, Jr. (+14076) 6 years ago
I always tip and because I do, my order goes to the front of the line and gets done before yours does.

[This message has been edited by Richard Bonine, Jr. (8/2/2013)]
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Posted by Wendy Wilson (+6167) 6 years ago
Ok. But a tip is supposed to reward good service. Why pay it beforehand? As far as the server is concerned he's already got the tip, why make any additional effort? I always tip because I know how little servers get paid but I agree with Bridgier about tips. Pay your servers a decent wage!
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Posted by Sandy Kiltie-Losing (+261) 6 years ago
In Montana wait staff are taxed 8% of their total ticket sales for the tables they serve. So if the tables they serve do not tip them at least 8% they lose money. And if you are a habitual under or non-tipper you are not popular, servers do not wish to pay for the pleasure of serving you.


So the to tip the carry out or not question would all depend on how the restaurant handles the take out orders if they are added into the managers total or if they are added to a individual server's total.
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Posted by Big Dave (+436) 6 years ago
So, are they taxed on 8% of the check which would be at their respective tax rate depending on total income or are they charged 8% of the dinner check in taxes - (on a $100 check they would pay $8 in taxes)?

If the first is true, 1% should be sufficient to cover taxes in most cases. If the second is true, our wait staff in the state is getting screwed big time.
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Posted by Wendy Wilson (+6167) 6 years ago
She may mean that the allocated tip rate is 8% of her total sales. The feds have a % for tips that is attributed to the server. This means that if they report less than 8% of their take in tips, the difference will be added to their W-2 income. But if the actual is less than the 8% the server can avoid paying on the higher number by keeping detailed records of his actual tips. The lesson is that a server should always report all tips to his employer.
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Posted by Jeri Dalbec (+2932) 6 years ago
Wouldn't it be nice if the business could just pay the worker a living wage? The price of the meal would include wages? Apparently, there is a lack of math ability as we noticed calculations for tipping 10, 15 or 20 percent, already calculated at the bottom of our bill where we ate in Billings the other evening.

Just think...it could affect the attitude of the workers and, who knows, maybe even generate such good feelings that the business would become so successful that they could pay a bonus now and then.

Just some random thoughts:-) I can just imagine the peace among the workers in a place like that. Honesty could prevail,as well.
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Posted by SeptyTwo (+641) 6 years ago
In California it is about the same concerning the taxes on total meal tickets the waiter or waitress brings in.

My Grandmother was a waitress for YEARS and yes, if she had $100 in meal tickets, then she would have to pay %8.00 (8%) on that.

She used to come home and count her tips and "work" tips. She always set aside and had a bank account solely for the deposit of tips that equaled 8%, that way she knew she would be able to cover her yearly taxes.

So yeah, if you go in with family and order and eat $100 worth of food and drink, and you DON'T leave a tip, then it cost that waiter 8 bucks just to serve you.

On the other hand, we should all get excellent service just because if we don't, we don't tip as much and the waiter or waitress is just screwing themselves on top of the taxes screwing them also.
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Posted by Big Dave (+436) 6 years ago
So if your grandmother was tipped at the usual rate of 15% she only got to keep 7% and paid the other 8% in taxes which makes a calculated tax rate of 53%. Are you sure she wasn't setting aside 8% of her tips?
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Posted by Jesse Smith (+413) 6 years ago
Servers are assumed to have received a tip equivalent to 8% of the meal total, and then they pay income tax on that amount just like they would any income. Using the previously mentioned example of $100 cost of the meal, the server would be assumed to have received a 8% ($8) tip, then they pay taxes on that $8 just like anyone would pay taxes on income. If they are in a tax bracket that pays 30% income taxes, then the server would owe $2.40 in taxes.

That being said, if I get lousy service from my server and they don't have a reason (eg. the restaurant is busy or understaffed, etc.) I won't tip much at all, though it's rare I get service bad enough to warrant this. If I get decent service I usually tip 20%, rounded down to the nearest dollar, and better service gets 20% rounded up to the nearest dollar.

I rarely tip at a buffet. Used to be you didn't have a server, just a busser to clean up, and you got your own drinks. In the last several years I've noticed they have started making the bussers bring you your drinks, no doubt just so the restaurant can call them a server instead of a busser, and pay them less than minimum wage, and expect me to make up the difference in their wages. Aint happening.

Also, I don't usually tip at all at on a take out order. I didn't get served Usually you pick up the food from a host/hostess, not a server in the first place, plus I'm not responsible to make up for the restaurants abuse of employee wages. I tip for service rendered, and that's it.
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Posted by SeptyTwo (+641) 6 years ago
My grandmother wasn't taxed on the 8 dollars, she was taxed on the 100 dollars.

I guess it depends on the area maybe?

To add, this was back in the late 90's when I lived with her for a bit. Not sure what the laws are now.
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Posted by SeptyTwo (+641) 6 years ago
Big Dave

She used to come home and count her tips and "work" tips. She always set aside and had a bank account solely for the deposit of tips that equaled 8%, that way she knew she would be able to cover her yearly taxes.


Just quoted myself lol didn't want to type it out again.
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Posted by Wendy Wilson (+6167) 6 years ago
I think you must be confused. The tax isn't the 8%. The 8% is the tip income allocated to the server. Income tax is based on income. The $100 ticket isn't the server's income. It just occured to me that what your grandmother was doing was saving money to pay her tax bill. With such a low hourly wage many servers can't have enough tax withheld from their paychecks to cover their tax liability.

[This message has been edited by Wendy Wilson (8/3/2013)]
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founder
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Posted by Amorette Allison (+9770) 6 years ago
If there were such a thing as a living wage, what the minimum wage was first intended to be when it was created, this wouldn't be such a problem.
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Posted by Bridgier (+8278) 6 years ago
and expect me to make up the difference in their wages. Aint happening.

Then why are you eating there? So you can help exploit the waitstaff?
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Posted by Elizabeth Emilsson (+788) 6 years ago
In Italy the waitress was insulted when I left a tip because she earned enough from her wages. Gratuity is apart of the cost of the meal. And that's the way it should be. Thanks to Ronald Reagan the
8 peer cent tax on servers was a part of the great tax reform. The server who brings food to the counter is not providing the same service. I'm sure the purveyor of the food is pocketing any tips as part of his revenue if you pay by credit card.
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Posted by cj sampsel (+482) 6 years ago
Takeout never tip. Delivery Yes. As for restaraunt dining many
waiters/waitresses also split tips w/ busboys,cooks and dishwashers
so if they are paying the tax they are screwed even more.
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Posted by Forsyth Mike (+431) 6 years ago
Since the tip is now "expected" as part of the worker's wage, as opposed to being a gift as a reward for great service, I think the practice ought to just be outlawed. Raise the prices of the menu to "include service" and just have it be priced that way. At least then, all of the tips would have a better chance of being properly reported and taxed. The way it is now, I think a LOT of tips go un-reported and un-taxed.
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Posted by Bridgier (+8278) 6 years ago
as opposed to being a gift as a reward for great service

I don't know why, but this phrase just bugs me.
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Posted by Forsyth Mike (+431) 6 years ago
I've looked that phrase over and I can't figure out any reason why it should bug you. Do you have a problem with rewarding somebody for great service?
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moderator
founder
Posted by David Schott (+14258) 6 years ago
Perhaps it's because once the waiter is assumed to receive tips, is taxed accordingly, and the restaurant is allowed to pay below minimum wage to the waiter then the tip is no longer a "gift for great service" but a necessary part of the waiter's wages.
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Posted by Bridgier (+8278) 6 years ago
I think it was the word 'gift' -
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Posted by Kari (+114) 6 years ago
Ok I have to comment on this, I usually stay out of the tip wars but as a server I'll just make it simple. Servers in Montana are required to claim 8% of their total sales for the shift, so if they sell $500 in food that shift (which is easily done) they are required to claim 8% ($40) for tax purposes. So when people tip $2 on a $25 check servers are technically paying for it in the end. Also where I work we 'tip out' bartenders and bussers 2% ($10) of our sales for the shift. I always tip on deliveries, takeout and places like Subway, not as much as I would at a sit down restaurant though.
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Posted by Big Dave (+436) 6 years ago
So do restaurant servers fill out a withholding statement as with any other job? And if so are the taxes withheld, considering the 8%, based on the withholding statement? If so a server with dependents is likely having nothing withheld. It's like any other job, withholding depends on your dependents and how much you make.

Also as I look at the 1040 form, tips and wages are all taxed at the same rate, so a server is only being overtaxed if they have received less than 8% of their checks as tips.

Since many people pay with credit cards these days and it is simple to add the tip to the bottom, are taxes calculated from those receipts or is it still left at 8% of the sales? My thought is that with credit card transactions we should be coming much closer to what actual tip income is relative to when folks left a few dollars laying on the table.
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Posted by Forsyth Mike (+431) 6 years ago
Perhaps it's because once the waiter is assumed to receive tips, is taxed accordingly, and the restaurant is allowed to pay below minimum wage to the waiter then the tip is no longer a "gift for great service" but a necessary part of the waiter's wages.


I guess you missed the whole point of my post. The original intent of tipping WAS as a gift for great service. "Thanks for the great service, here's a little extra for you."

But since employers have now made it part of wages, and customers are basically required (or at least "strongly expected" to tip) I think it ought to just be added in to the price of the menu items, and taxed accordingly. Doing this would undermine those people who "stiff" servers, and it would also make sure that all money paid for service is taxed as it should be. It would also eliminate having to do math at the table!

It might result in a few less people dining out, but those are probably the ones who wouldn't tip anyway so who cares.
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Posted by Wendy Wilson (+6167) 6 years ago
Employees are generally required to report ALL of their tips to their employer. This holds whether they are cash or credit tips. One is just easier to document than the other. If the employee doesn't report tips reaching 8% of their take then the employer should report the difference on the w-2 as allocated tips. Only if the employee can prove that they didn't make the 8% can they avoid this from happening. And that's hard to do.
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Posted by howdy (+4946) 6 years ago
was told as a kid that "tips" stood for "to ensure prompt service".... have no idea if true...
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