I Confirmed It!!!!!!! A family of four really CAN eat for $75 a day!!!!!

[jbbt]

Actually it's $75.94 per day, maybe a little more if you add in room snacks.

Anyway, this thread is in reference to:

We did it again! Family of 4 eats for $75 a day. Read all about it, plus reviews!

and in regards to whether or not that OP really could make the claim, as there was "debate" concerning her tipping practices.

Let me preface this post with the fact that most of my family has or is still working in restaurants as bus boys, hostesses, bartenders, waitresses and managers. Also, tipping only has to be done on the food and beverage sale and service (Subtotal), not on the sales tax although we all usually do that. The subtotal is what is reported to the IRS by the employer. I just verified it on the IRS website, feel free to check it out for yourself. The federal government doesn’t care about state tax.

So I present to you what NvrBnToWDW posted about the 3 sit-down meals (yes, after all of those posts only 3 of the meals were actually table service meals!). I leave out the fact that she explained that she had a single party that matched her tip to give the “worst case” figures. I have calculated what 15% would be on the food and beverage sale and service (Subtotal) and what 15% would be on the After-Tax Total (what most people usually use to tip).

Planet Hollywood
Subtotal: $39.05
Plus Tax: $41.59
Tip: $4.00
Grand Total: $45.59

15% tip on Subtotal PlusTax: $47.45
Difference: Shortage of $1.86
15% tip on After-Tax Total: $47.83
Difference: Shortage of $2.24


Sci-Fi
Subtotal: $52.02
Plus Tax: $55.40
Tip: $5.00
Grand Total:$60.40

15% tip on Subtotal Plus Tax: $63.20
Difference: Shortage of $2.80
15% tip on After-Tax Total: $63.71
Difference: Shortage of $3.31


Primetime 50's Cafe
Subtotal: $45.99
Plus Tax: $48.98
Tip: $7.00
Grand Total: $55.98

15% tip on Subtotal Plus Tax: $55.88
Difference: Overage of $0.01
15% tip on After-Tax Total: $56.33
Difference: Shortage of $0.35


SUMMARY:
Pre-Tax Tipping:
She tipped $3.66 (-$1.86-$2.80+$0.01 = -$3.66) under the 15%

Post-Tax Tipping:
She tipped $5.90 (-$2.24-$3.31-$0.35 = -$5.90) under the 15%


According to many people’s guidelines: She needed to leave $5.90 more in tip. Add that to her grand total of $525.68 to equal $531.58 divide it by 7 days to equal $75.94 per day.




**Edited to add tax to the Subtotal and better format

 

[maggiew]

That's so funny. I did the same thing on Excel and came to the same conclusion. I was just too chicken to post about it.

Maggie

 

[jbbt]

Thank you maggiew! I knew there had to be another obsessive number cruncher out there.

 

[patsal]

I thought the same thing, and I do not tip on the taxed total, just the subtotal myself.

 

[jbbt]

BTW - if you say, "Yes, but she shared meals." Give me hard and fast numbers! From my quick analysis, most of the time she "shared" two meals between two people or shared breakfast and then went on to have lunch, dinner and snacks. That seems very reasonable to me!!!

Also, if you say, "But they ate some stuff in the room." Again, give me numbers! Most of us do eat a little something in the room that we don't include in our "budget". But that aside, throw in a couple of more dollars and it's not going to change the bottom line by much.

NvrBnToWDW - "Brag" away!!

 

[mjmcca]

In reference to

We did it again! Family of 4 eats for $75 a day. Read all about it, plus reviews!

and in regards to whether or not that OP really could make the claim, as there was "debate" concerning her tipping practices.

Let me preface this post with the fact that most of my family has or is still working in restaurants as bus boys, hostesses, bartenders, waitresses and managers. Also, tipping only has to be done on the food and beverage sale and service (Subtotal), not on the sales tax although we all usually do that. The subtotal is what is reported to the IRS by the employer. I just verified it on the IRS website, feel free to check it out for yourself. The federal government doesn’t care about state tax.

So I present to you what NvrBnToWDW posted about the 3 sit-down meals (yes, after all of those posts only 3 of the meals were actually table service meals!). I leave out the fact that she explained that she had a single party that matched her tip to give the “worst case” figures. I have calculated what 15% would be on the food and beverage sale and service (Subtotal) and what 15% would be on the After-Tax Total (what most people usually use to tip).

Planet Hollywood
Subtotal: $39.05
Plus Tax: $41.59
Tip: $4.00
Grand Total: $45.59
15% tip on Subtotal: $44.91
Difference: Overage of $0.68
15% tip on After-Tax Total: $47.83
Difference: Short by $2.24

Sci-Fi
Subtotal: $52.02
Plus Tax: $55.40
Tip: $5.00
Grand Total:$66.40
15% tip on Subtotal: $59.82
Difference: Overage of $6.58
15% tip on After-Tax Total: $63.71
Difference: Overage of $2.69

Primetime 50's Cafe
Subtotal: $45.99
Plus Tax: $48.98
Tip: $7.00
Grand Total: $55.98
15% tip on Subtotal: $52.89
Difference: Overage of $3.09
15% tip on After-Tax Total: $56.33
Difference: Short by $0.35


SUMMARY:
Pre-Tax Tipping:
She tipped $10.35 ($0.68+$6.58+$3.09 = $10.35) over the %15
Post-Tax Tipping:
She tipped $2.69 over and tipped $2.59 ($2.24+$0.35 = $2.59) under SO her net tip for the trip was actually $0.10 over the 15% Post-Tax Total.

According to many people’s guidelines: Once she needed to leave $0.35 more and once $2.24. Add that to her grand total of $525.68 to equal $528.27 divide it by 7 days to equal $75.47. We all learned rounding in school, so we know that rounds down to $75, so indeed she can claim to feed her family of 4 for $75 a day!!!!!!!!

I was not in onthe first thread but a $4.00 tip on a $39,05 bill is not anywhere near 15%. according to my calculations a 15% tip on that bill is $5.86


a 15% tip on her second bill would have been $7.80 not $5.00.


She actually over tipped onthe last bill by about $.11 This is all pretax.

The first one ws actually a no brainer. The bill was nearly $40 and she only tipped $4 so that is only 10%.

 

[maggiew]

I was not in onthe first thread but a $4.00 tip on a $39,05 bill is not anywhere near 15%. according to my calculations a 15% tip on that bill is $5.86


a 15% tip on her second bill would have been $7.80 not $5.00.


She actually over tipped onthe last bill by about $.11 This is all pretax.

The first one ws actually a no brainer. The bill was nearly $40 and she only tipped $4 so that is only 10%.

That's what the debate was on the other thread. That she tipped too little. But if you look at the calculations above, the last line says something like "Short by $2.24" or something like that. That is what would have been needed to reach an "acceptable" tip level.

Maggie

 

[Ready to go in Ok]

Wow

 

[mjmcca]

That's what the debate was on the other thread. That she tipped too little. But if you look at the calculations above, the last line says something like "Short by $2.24" or something like that. That is what would have been needed to reach an "acceptable" tip level.

Maggie

actually I could not tell what she was short by from what the OP posted. the OP was mixing pre and post tax. Pre tax she is not short at all on the last bill.

Like it or not there is such a thing as an acceptable tip level, The employer is required to report to the IRS thetotals of the meal the employee serves and the waitstaff is taxed on that amount. You are stiffing them if you do not tip the minimum. People dont like to hear it but if everyone tipped like this then there would not be many servers left ( they would not be able to afford to work in that profesion)

 

[maggiew]

I agree. I only put "acceptable" in quotes because what is acceptable to one may not be acceptable to another. Around here in Chicago, 20% is expected as the "normal" level of tip. More like 25% if exceptional service.

Maggie

 

[johnvree]

I alway tax more than 20% as long as the service is at least average. So I am making up for some shortfalls.

I bet most people tip a little more than 15% so they should be doing ok.

 

[jbbt]

Like it or not there is such a thing as an acceptable tip level, The employer is required to report to the IRS thetotals of the meal the employee serves and the waitstaff is taxed on that amount. You are stiffing them if you do not tip the minimum. People dont like to hear it but if everyone tipped like this then there would not be many servers left ( they would not be able to afford to work in that profesion)

What are you talking about? In the original post it explains what gets reported to the IRS. I did correct the Subtotal numbers to add in the tax. Give me numbers if you disagree with what I've posted. The point of this thread is that the lady who took the vacation, only came up short on her tip by $2.69 by most people's standards. Add that number to her total dining cost for a week and she still fed her family for $75 a day.

 

[mjmcca]

What are you talking about? In the original post it explains what gets reported to the IRS. I did correct the Subtotal numbers to add in the tax. Give me numbers if you disagree with what I've posted. The point of this thread is that the lady who took the vacation, only came up short on her tip by $2.69 by most people's standards. Add that number to her total dining cost for a week and she still fed her family for $75 a day.

If I could understand the numbers you posted I would give you something to conter it.

If everyone only shorted the servers by that every time every day where would we be getting servers from?


I am not disputing the amount she spent a day but I dont think it is correct to short the servers.$2 here $3 there it adds up if done consistantly.

 

[crisi]

What are you talking about? In the original post it explains what gets reported to the IRS. I did correct the Subtotal numbers to add in the tax. Give me numbers if you disagree with what I've posted. The point of this thread is that the lady who took the vacation, only came up short on her tip by $2.69 by most people's standards. Add that number to her total dining cost for a week and she still fed her family for $75 a day.

And according to an article I found yesterday, the IRS only collects tax for tips on 7-8% of restaurant receipts nationally. If everyone is tipping 15-20%, waitstaff is underreporting their income significantly. Either not everyone tips like the restaurant industry would like you to believe, or waitstaff is still underreporting tipping and makes a good deal of money "under the table."

 

[jbbt]

And according to an article I found yesterday, the IRS only collects tax for tips on 7-8% of restaurant receipts nationally. If everyone is tipping 15-20%, waitstaff is underreporting their income significantly. Either not everyone tips like the restaurant industry would like you to believe, or waitstaff is still underreporting tipping and makes a good deal of money "under the table."

Actually the waitstaff is supposed to report anything over 8%. The government assumes they get 8%. Sometimes they get more, sometimes they don't even get 8% (sometimes they get nothing). I am not aware of anyway they can report that they didn't get tipped at least 8% on a bill, but the IRS sure wants to know if they get tipped more than 8%. I think this is where is gets dicey.

 

[jbbt]

How did I end up here....in the middle of a tipping debate?

Anyway, the little math man in my head, still won't quit crunching numbers. Tell him to stop. Make him go away!!!

Here is an interesting example of pre-tax tipping vs. post-tax tipping:

Bill: $100.00
Tax Rate: 6.5%
Tip: 15%

Guy 1: Pre-tax tipper, how the IRS sees it, will tip $15.00 for a total of $121.50
Guy 2: Post-tax tipper, most everyone, will tip $15.94 for a total of $122.48

Guy 1 sees Guy 2 as paying 16% tip. Guy 2 sees Guy 1 as paying 14%. Averaging out to 15%, making everyone happy!!

Make him go away! Make him go away!! My brain hurts!

 

[jbbt]

If everyone only shorted the servers by that every time every day where would we be getting servers from?

I am not disputing the amount she spent a day but I dont think it is correct to short the servers.$2 here $3 there it adds up if done consistantly.

What?????????

If you want to debate that, go start your own thread like I did. I totally meant that to be funny and am explaining it because "funny" doesn't always come through on the computer.

 

[mjmcca]

What I am saying is if everyone did it then no one would take that job.

I still dont understand your numbers.

 

[Conservative Hippie]

I understand the numbers, and it seems reasonable. Around here, you start a tip at 15% and go up or down from there.

But, I just have to share the story of the time DH and I got chased out of a restaurant into the parking lot by an angry waiter because he "didn't see" the $10 bill we left on the table. I never tip in cash anymore!!!!

 

[averysmom]

These two threads - the original and this one - have been very informative for me. I'm from Canada and here our servers - or at least in my province (state) make minimum wage - which is up to 7.10/hour. We have 14% tax on all our food - so most ppl. I know just tip the tax - it makes it very easy to calculate So I am used to tipping 14% (pretax) for decent service and have only ever tipped 20% or beyond if the service is above and beyond OR my kids were maniacs I always thought I was a decent tipper - and I think I am for where I live - but obviously in Disney I'm not!
Thanks for the informative thread!

Question - On the DDP - the servers get 18% - post tax or pretax? And is that enough? (sorry if this is hijacking!)