Nancyg56
DIS Legend
- Joined
- Aug 17, 2005
- Messages
- 29,495
Exactly. Cash may not be recorded but that is not correct if it's not. Tips have to be used to make certain the servers pay is meeting minimum wage and if it's not, the employer is required to make up the difference. Now, almost all have no problems reaching the really low minimum wage threshold when you combine their tip avg and their wage avg per hour but they do have to meet it. Go read your labor poster sometime. So yeah, that cash is important and you can bet your employers are gonna make them claim it. At least some of it. And if they are following the rules, they make them claim all of it.
And I believe in some restaurants it's not uncommon to pool tips, cash included. Can employees be dishonest with cash tips? I'm sure they are. Dishonest is dishonest though.
I cannot speak to pooling tips. I can discuss reporting cash gratuities. There is an expectation that servers who are in tipped positions will receive some cash tips, so at this time they better be reporting some. There is also an expectation that servers receive a minimum percentage of their sales tickets, and of that some would be in cash.
I have had conversations with all of my businesses about encouraging their servers to report cash to them for a variety of reasons, and have been as successful as possible when servers know that if an audit is conducted and the department of revenue determines that wages are underreported the penalties and interest are significant.
In terms of tips in WDW resorts being charged back to the room, these tips are recorded as income and are likely spread out over the number of people associated with that ticket, and reported as charged tips for each individual. One also must be aware that there is going to be peer pressure in any restaurant that has a breakdown of the gratuity between servers, bus people and runners, and bar. Cash is included in what the servers must share with those folks.
In regards to paying minimum wage, you are correct. In establishments where servers may not always make minimum management will pay close attention to cash left on the table to mitigate their wage requirements, however it really is not the main reason that servers are "encouraged" to report all gratuities. It is for tax purposes, both state and federal liabilities.
The supreme Court the entlyrules that mandatory pooling of tips is illegal, so restaurants that still pool tips are breaking the law.
As for if cash is claimed or not, the employers really can't control if the servers properly claim it or not.
Actually, employers are responsible for reasonable care. If my employers get audited, they will be supplying daily reports which should include individuals daily sales. If a server is routinely not reporting 15% or so, or at least 10%, the employer needs to pay close attention. As I said, it is the employer who is hauled into the audit, and it is not pretty. You would be surprised how actively involved an employer can be when it comes to being mindful of monies left on a table or bar. Add the pressure of tipping out those who assist, and while they are not all reported, the cash does go up. If my businesses are an indication of what happens when they are aware of consequences, I imagine employers such as those WDW restaurants are even more vigilant.