New DDP- Servers not happy!

[dburg30]

That's under small business / self employeed (under 10 million in assets). Do you know that it's the same for a large business?

 

[dburg30]

And also I found this Publication 531, Reporting tip income.. In that is has this..

Allocated Tips
If your employer allocated tips to you, they are shown separately in box 8 of your Form W-2. They are not included in box 1 with your wages and reported tips. If box 8 is blank, this discussion does not apply to you.

What are allocated tips? These are tips that your employer assigned to you in addition to the tips you reported to your employer for the year. Your employer will have done this only if:
You worked in a restaurant, cocktail lounge, or similar business that must allocate tips to employees,

The tips you reported to your employer were less than your share of 8% of food and drink sales, and

You did not participate in your employer's Attributed Tip Income Program (ATIP).


How were your allocated tips figured? The tips allocated to you are your share of an amount figured by subtracting the reported tips of all employees from 8% (or an approved lower rate) of food and drink sales (other than carryout sales and sales with a service charge of 10% or more). Your share of that amount was figured using either a method provided by an employer-employee agreement or a method provided by IRS regulations based on employees' sales or hours worked. For information about the exact allocation method used, ask your employer.

---Must you report your allocated tips on your tax return? You must report allocated tips on your tax return unless either of the following exceptions applies.
------You kept a daily tip record, or other evidence that is as credible and as reliable as a daily tip record, as required under rules explained earlier.

------Your tip record is incomplete, but it shows that your actual tips were more than the tips you reported to your employer plus the allocated tips.

If either exception applies, report your actual tips on your return. Do not report the allocated tips. See What tips to report under Reporting Tips on Your Tax Return, earlier.

the ---- were added by me as it seems to be the important part. I dunno how it works for sure, but it seems like you dont have to use the allocated if you follow certain rules.

 

[minster22]

Many years ago the IRS came to the restaurant I work in and gave us (the servers) a seminar on tip reporting. This was part of the IRS's effort to collect more of what is due in taxes from underreported and unreported income (servers, hair dressers etc). Our owner signed an agreement with the IRS that he reports a set tip percentage amount(way more than 8%) for each server based on our daily sales that is an average of reported tips (credit card sales). Since almost all restaurants now have computer systems (Disney of course) which tracks all sales, this is the tax I pay whether I have actually recieved the tip or not.I am sure Disney has some kind of similar agreement with the IRS since it relieves the employer of any tax liability for collecting servers taxes. I cannot even imagine how adversely the new DP will affect WDW servers... they are working in an incredibly difficult serving enviroment....large parties, lots of children, tourists, huge expectations on all levels....it is all added pressure to a pressure cooker enviroment to start with. Yes, some restaurants have a lot of business at Disney but there are many restaurants which are not full all the time plus many of the servers work part time for a long time before they are given full time jobs.Although I am usually not a fan of adding a tip in my job, I feel it was one of the best features of the DDP. It allowed the WDW server to know they were going to be well compensated for their job and also took away the stigma that so many "discount dining plan customers" have ( can vouch for that first hand!!)I used the plan 3 different times and had very good to superb service each time...sometimes by experienced wait staff , others times very young kids who did an exceptional job. I am not saying that a tip should always be added for waitstaff but whenever some kind of discount, meal plan is used then an automatic gratuity should be added since many times, more times than not, the server will not be tipped the proper amount.I am not sure if we will use DDP in the future...the DDE may work better for us....

 

[dburg30]

I am not saying that a tip should always be added for waitstaff but whenever some kind of discount, meal plan is used then an automatic gratuity should be added since many times, more times than not, the server will not be tipped the proper amount.I am not sure if we will use DDP in the future...the DDE may work better for us....

The DDE should probably include an automatic tip also, so folks dont tip on the discounted price.

I'm against ANY automatic tipping, with the exception of a large group. The only reason I dont have a problem at that point is that if a server is waiting on 5 regular tables while another server has 1 large table and maybe 1 or 2 others at that point, if the large table stiffs them, that's a BIG deal, where if one table stiffs the person with 5, it's not such a big deal. And I'm NOT saying people should stiff and not tip, but I am against an auto tip on regular dining. And also, a 'proper' amount. Sorry, there is no proper amount of a tip. If a server just is horrible for whatever reason (as a customer I really dont care) a 'proper' tip IMO is NONE. And I've said before, I wont blame the server for things they cant control, ie: some cook that doesnt know the difference between rare and well done. But if I constantly have to wave my server down to get a refill on my tea, or I ask for steak sauce and it never shows, etc. THOSE things can drastically change the tip the server gets..
Yes, I have left no tip before, and I really dont care what the server or anyone else thinks. IMO, they still got paid too much for that service. Good thing is I think that's only happened 2 times ever.

 

[pookienoodle]

And does anyone know this for a fact? I find this very hard to believe! Please prove this one to me.

sorry to go off topic.
what wonderful photo's you have in your post Rachelsmom1.
they brought a smile to my face.

 

[dizfanz]

DW and I are both restaurant lifers. We both work in upscale places where tips average between 18-20%. My restaurant has always had a policy of no gratuity, no matter what size, unless it was booked as a banquet. So a party of 30 may not have gratuity added. DW's restaurant had 18% on parties of 8 or more. Last year, they removed gratuity completely. They created an ink stamp to mark the checks before there were presented that said no gratuity included. If a server used that stamp(which was mandatory) and 18% tip was not left, the restaurant would pay that out of their pocket to the server. If they did not stamp the check, tough. Needless to say, after a year the restaurant added back the gratuity because when polled, something like 85% of servers said that was the one change they would make if they could. But Disney could use a similar red ink stamp on checks that would eliminate servers "begging" for tips.

As far as the taxing goes, 8% was the standard many years ago. Just about everyone in the biz declared that, regardless of what they made. A few years ago, the gov't realized that restaurants were not paying there fair share into Social Security because servers were underdeclaring tips, thus employers had to match what was taken out of servers paychecks, which is basically null. The Supreme Court agreed and said that the IRS could use credit card tips as a basis of determining what a server was being tipped % wise. Thus is a server received 20% credit card tips, they better be declaring 20% cash tips as well(but most were declaring little to make the magically 8% work out). This is used as a guidline for the IRS, not an actual taxation amount on the servers pay. It basically says that the burden falls to the server/employer to prove they are making less in cash than they do with credit cards.

 

[dizfanz]

The DDE should probably include an automatic tip also, so folks dont tip on the discounted price.

QUOTE]

Starting January, it does.

 

[TDC Nala]

The DDE should probably include an automatic tip also, so folks dont tip on the discounted price.

QUOTE]

Starting January, it does.

Yes, automatic 18% gratuity in 2008 for any order made with a DDE card.

I used to add back in the 20% discount but I doubt I'll be figuring in the extra 2% now.

 

[Shasta]

I'd like to add in the 8% conversation. I retired as a hair designer after 19 years a few years back. The IRS 8% tip went from a softball pitch at conventions back in 2000 to a fully implemented plan in 2003. But just to add another scarey side to it, I and others in my buisness were told that if you didn't claim 8% and were audited, the IRS could back charge you 8% of your previous claimed income for the last 7 (I'm 80% sure it was 7. It could have been 6) years.

The threat was clear, agree to the 8% or your more likely to be flagged for an audit becuase of the type of buisness.

 

[BeadyLady]

But I bought into this DDP for Oct 07; 43 days away - I hope the tips are included in my DDP. At least that is what I read, yes? What is the percentage for the servers? Do you know if it is a flat 15%? If so, I've gotta pack some cash.
Thank you for any info!

 

[dburg30]

But I bought into this DDP for Oct 07; 43 days away - I hope the tips are included in my DDP. At least that is what I read, yes? What is the percentage for the servers? Do you know if it is a flat 15%? If so, I've gotta pack some cash.
Thank you for any info!

2007 includes the 18% tip.

 

[BeadyLady]

thank you for the info - I can use the 18% on the DDP, and tip extra for the beers I'm gonna get!

 

[MousekaMaddi]

BeadyLady, I had the exact question as we got DDp for Nov before new changes ,,,,,,,,thanx for assuring me tip is included for Nov............ I wasnt sure myself!

 

[faindrops27]

thank you for the info - I can use the 18% on the DDP, and tip extra for the beers I'm gonna get!

Your tip will be included on your adult drinks.

 

[patsal]

thank you for the info - I can use the 18% on the DDP, and tip extra for the beers I'm gonna get!

Any items ordered in additon to what is included on the DDP will have an automatic 18% added.

 

[spiceycat]

boy back to those awful purple cards that the servers gave you with the bill.

it says 15 to 20% - but who is going to give 20% when disney only gave 18%.

so yes less tip.

with disney adverstising - I can see new guests especially from Europe or Asia - who doesn't understand that the tip is not included in the receipt.

just because it is there.

 

[spiceycat]

The assumed tipping rate imposed by the IRS is in retaliation for those who didn't report their tips for many, many moons.

just like the IRS go after the little folks who you can bully vs the one with the money.

still remember that survery - 85% of men who made over $500,000 either cheated on their spouses or IRS.

that to me is where the IRS should be spending its (NOT TO MENTION MY) money

 

[mom2my3kids]

It's a last remnant of barbarism here in the US. We need some legislation to bring wait staff into the minimum wage category. They should never have been excluded in the first place.

The assumed tipping rate imposed by the IRS is in retaliation for those who didn't report their tips for many, many moons.

One of my pet peeves on tipping is that it is assumed that the tip is based on the total amount of the bill. Here in this part of Virginia, the tax on restaurant meals (all prepared and served at eating temperature food, even deli counters) is 11.5%. Now, I'll pay a fair tip on the cost of the meal, but why in heavens name should I pay a tip on the tax?

I would not serve tables for minimum wage, its not worth it its hard work and you put up with alot of peoples crap.I don't do bad, I have been doing it for 9 years so I have my regulars but its not a high class place its just breakfast. The point is you can make good money if you are a good server and you have customers who know how to tip..Yesterday I had 4 people who fought over who was going to pay the bill right? I gave them excellent service and you know what they left me on a 35.00 bill? One dollar bill and 4 quarters and a few pennies..Now if you can afford to buy the other peoples meal then you should be able to afford a decent tip when you have gotten excellent service. My single lady who left me 5.00 dollars on a 9.00 breakfast made up for the cheapskates.. Then last week I had a party of 12 that left 35.00 on a 94.00 ticket, but the girl in the other room got 4.00 on a 74.00 ticket with a party of 14 ?? It all depends on your service and the type of people you wait on.

 

[racefanof88]

Ok, I know what I am going to say is going to make some people mad but, here goes anyway.

I don't have a problem leaving a good tip for good service but, if I get bad service I leave a bad tip. IMO the server knows if they give bad service( i.e not refilling drinks, attitude when asked quesions or have something wrong pointed out to them, get my food wrong etc.)they will get a bad tip so the burden falls on them. And noone is forced to work at the Disney resturants. If they don't like the money they make there are MANY more resturants in Orlando.

And I know tips are based on the price of the meal but, is it really any harder for the wait staff to carry a steak to my table than a hamburger. If anything the chef is the one who works harder based on what I order. My $5.00 hamburger is much easier for him to cook than my filet mignon with wine sauce and sauteed mushrooms with garlic mashed potatoes.........lol.

I know what I am saying is going to get me flamed but it is just my honest opinion. I know waiting tables is hard work as I have family who are waiters and waitress'. I usually tip at least 20% as it is easier to do the math in my head that way, but that is if I get good service.

I don't understand the problem some are having with paying for the DDP ahead and then having to have extra money for the tip. Saying they like to have everything paid for in advance so they will not do the plan. Well, are they not going to have to pay for their meals else where? If the problem is having everything paid for in advance put the money on a pre-paid visa or mastercard and use it. The same as having everything paid for in advance.

The changes Disney made were a business decision and that is the bottom line. I don't like the changes either. So, I have the option of buying the plan or not, eating on property or not. Disney has done the research you can be sure, so losing a customer or two won't hurt them. I am sure they kept a count on the number of customers lost at TS resturants due to the DDP, and they know they will recoup the money of a few lost customers by having openings for walk up business.

OK flame away. I have played the devil's advocate long enough.

 

[mickey2000]

Quote " they will recoup the money of a few lost customers by having openings for walk up business."
I don't believe you will see this (walk up) at most places to eat.
If this is to happen, IMO Disney needs to build more places to eat.