I wonder if this happens at the Landry's in WDW

[schoen]

http://blog.mlive.com/annarbornews/2008/01/gandy_dancer_taps_into_staffs.html

I am a local, and I don't think I will be going to the Gandy Dancer anytime soon..

 

[dreamer17555]

That is terrible but I heard something about the servers at places operated by them being ripped off. It is so not fair. I feel bad for them.

-Becca-

 

[schoen]

When I was in college I worked at a Joe's Crab Shack. They did deduct a certain percentage of our tips for the hosts that was NOT made known to the servers, or at least not well known. I knew because I started as a host, and I collected tip-out. When I went through server training they told us they deducted a certain percentage for bussers and bartenders, and then we also had to physically hand 1% to our food-runner if we had one. It was not an automatic deduction because we only occasionally had a food runner. I would not have otherwise known about the host tip-out. but i was younger, and never paid that much attention to my reads then...

I just feel bad about this whole thing. i want to know what the practice is in Fl...

 

[disnut8]

This is a common practice in restaurants. Credit card processing fees can be a big expense and when someone is looking at the bottom line, this is a way to reduce that expense. It sucks that it comes out of the servers' tip, though. You can avoid that at any restuarant by tipping in cash. My in-laws do that all the time.

The restaurants can't increase the price of the food to show the offset to the expense. Because the food sales go into revenue. They would still have the same expense amount. And whenever anyone is looking at net income and ways to increase it, they ALWAYS look to reduce expenses.

 

[sunny04]

Customers need to be made aware of this! I could just as easily leave a cash tip that they could have all of, instead of putting it on my card.

 

[Rock'n Robin]

FYI, if you tip on your Credit card at Bob Evan's, the server doesn't get the tip until the next check. It goes into their earned income and is also taxed. One of my students who works there told me this. If she gets a cash tip she gets it right away, but if it's on the card she has to wait and have taxes taken out of it.
Robin M.

 

[suzannews]

FYI, if you tip on your Credit card at Bob Evan's, the server doesn't get the tip until the next check. It goes into their earned income and is also taxed. One of my students who works there told me this. If she gets a cash tip she gets it right away, but if it's on the card she has to wait and have taxes taken out of it.
Robin M.

Good to know. Anyone know of any other restaurants like this?


As a server myself, I always try and tip in cash.

 

[kimsuenew]

FYI, if you tip on your Credit card at Bob Evan's, the server doesn't get the tip until the next check. It goes into their earned income and is also taxed. One of my students who works there told me this. If she gets a cash tip she gets it right away, but if it's on the card she has to wait and have taxes taken out of it.
Robin M.

Just curious... shouldn't that be the way it is? Meaning that it is income, and therefore should be taxed?

 

[MRYPPNS]

FYI, if you tip on your Credit card at Bob Evan's, the server doesn't get the tip until the next check. It goes into their earned income and is also taxed. One of my students who works there told me this. If she gets a cash tip she gets it right away, but if it's on the card she has to wait and have taxes taken out of it.
Robin M.

I to do payroll for a living. Everyone that receives cash tips has to report them. They are taxable income. Credit card tips are either paid out thru payroll for that pay period or they are allowed to "cash out" their credit card tips so long as they balance to their checks for the shift.
I don't agree with deducting a % of credit card tips from the employee, the company should built that amount into their prices. It just another overhead cost. Credit card processing fees can be very expensive for a small business...3% to 5% of the sale.

Just curious... shouldn't that be the way it is? Meaning that it is income, and therefore should be taxed?

You are correct.

 

[Uncleromulus]

Of course it's income and of course taxes should be paid.
However, I don't agree with a restaurant holding servers tips hostage to credit card expenses. Any tip they earn (cash or credit card) should be paid to them immediately (or as soon as possible). Credit cards are a way of life these days, and credit cards are a huge part of any restaurants business. Any expenses associated with them should be accounted for in other ways.

 

[tink too]

I always try to tip in cash - that way I know the server got it!

 

[schoen]

The issue is not that the money is being withheld for tax purposes. They are essentially charging the server for their customers use of their credit card. If businesses don't want to pay for credit card processing fees they should not accept credit cards. Can you imagine if a check-out person at a grocery store was issued a charge every time a customer came through their line and paid with a credit card? It would be ridiculous. Some states allow this for tipped employees. I am just curious is FL is one of them?

Servers have to claim all of their tips. some of them wrongfully do not claim all their cash tips, but this is illegal, and a separate issue.

 

[JCMcGinn]

The restaurant isn't making the server pay for the restauant's card processing fee, only a portion of the 3-5% fee charged to process the tip. The restaurant is paying 3-5% of the total including tip & tax and asking the server to pay about half the fee to process only the tip.