Has Tipping Gone Ballistic?

[Cinnamon_Girl]

@missbunny

I’m not all that sure that Starbucks (although perhaps that’s not where you work) is classified as a full-service restaurant under IRS code.

I’m unable to locate an IRS classification for “full-service restaurant.” If you can, I’d be interested in seeing it. Although I think Starbucks does fall under the “large food or beverage establishment” to which the IRS applies this rule. In order to impute tips, the establishment must meet the following criteria:
[ul]
[li]Food or beverage is provided for consumption on the premises (It is.)[/li][li]Tipping is a customary practice. (It is.)[/li][li]More than 10 employees, who work more than 80 hours, were normally employed on a typical business day during the preceding calendar year. (They are at my store.)[/li][/ul]

Because Starbucks meets these criteria, the company is subject to the IRS rule.

No more than Dunkin’ Donuts is, or Au Bon Pain is, or Dairy Queen is. And those places serve a LOT more food than Starbucks.

The rule is not limited to food establishments but also includes beverage establishments, so whether they serve more food than Starbucks does is a moot point.

Unfortunately, I can’t speak for the policies of those other companies Except for the fact that DD, ABP, and DQ are franchised, whereas Starbucks are not. I work for the corporation, not a franchisee. I don’t know what kind of effect this has on the tip imputing policies of the other companies, but I can tell you that a corporation as large as Starbucks are going to make sure they are fully in line with IRS requirements. And as a side note: I have seen tip jars both at Dunkin’ Donuts and Dairy Queen locations.

However, let’s say that it is. They can apply for a dispensation from the 8% rule, and go as low as 2% of sales, which is greatly to the advantage of the employer as they have to pay lower Medicare, FICA, unemployment insurance, workers’ comp insurance, and a host of other costs that are based on the total employee wage base. If an employer is able to do that, it most certainly will.

True, and I don’t know whether the company considered the possibility, but given the fact that 8% is generously low, I’m sure they would have determined that there’s no valid case for a lowered percentage a case when faced with the fact that tips reported accurately are well above the amount imputed.

I also don’t fully believe that the IRS has classifed take-out coffee shops as being establishments in which the employees regularly and customarily receive tips.

I’m not sure where you get your information that the IRS has not classified coffee shops as establishments where employees regularly and customarily receive tips. But I’m sure all it takes is for one IRS employee to walk into one Starbucks and see that this is, in fact, the case. I don’t think Starbucks really wants to dispute that.

Because if they had, it would be astoundingly generous for coffee shops like Starbucks to have not started paying their employees less than minimum - since according to the IRS they are supposedly making at least 8% of sales in tips on a regular and customary basis.

In case you hadn’t noticed, Starbucks is astoundingly generous with its employees. Besides, paying a food service employee less than the minimum plus tips doesn’t necessarily mean that the employee is going to earn less than minimum wage, since establishments that do that are required by the Dept. of Labor to make up any shortfalls in tips that result in an employee earning below the minimum wage. The only difference is that the public ends up paying part of the employee’s wages. I don’t think Starbucks is going to do that anytime soon.

Plus, I’ve been in some Starbucks or Dunkin’ Donuts or similar places where they do have a tip cup and others where they don’t. How can that be, if they are supposed to be reporting that employees regularly receive tips? I find it hard to believe that none of the employees at the no-tip places - who are supposedly still paying taxes on a percentage of sales - haven’t complained yet.

Again, I don’t know relative to Dunkin Donuts as I don’t know their corporate policies on tips. Starbucks does allow tip jars (with minimal restrictions including there can be no written indication its a tip jar) in its corporate stores, but certainly doesn’t require it. I doubt though that tips are imputed in those stores where tips aren’t collected. And, yes, corporate does acknowledge employee disputes in this matter.

[Cinnamon_Girl]

@missbunny

Cinnamon Girl, I logged back on because I think my post came across as though I was saying you’re lying. I obviously don’t work where you work and you must know better than I do about whatever procedures your employer has. I do think that coffee shops are not, generally, deducting taxes based on 8% of sales, nor do I think their employees are reporting the amount from the tip cup that is presumably split among all the people on the shift. But I don’t know the specifics of YOUR employer and I didn’t want to come across as though I did. You are, of course, more qualified to comment on them than I am. Sorry if I came across badly.

It didn’t come across that way to me. I don’t know if I said something to that effect, but I apologize if I gave you that impression. I hope I was just being more specific in response to the questions you raised. Obviously, I can’t speak for every person and every corporation in the tipping industry, so I’m going on my experience and what I learned when our own corporate policy changed and I started seeing the imputed tips on my paychecks.

But, I suppose, since taxes are a fact of life in this country, the best you can hope for is to earn enough to get by and further hope that taxes don’t take too big a bite out of your earnings. :::sigh:::

[Sami41]

@Burnt Sugar

In that case, you could be causing them to unknowingly drive with a BAC over the limit. Did you think of that? :eek:

I was taught to very strictly measure my drinks. If people wanted stronger drinks, we put more ice in.

I’m sooo glad tipping is not the norm in Australia. Sounds like a huge pain in the arse.

My customers are not “unknowingly” doing anything.

My point is simply that they are getting more bang for their buck. That doesn’t mean I won’t cut them off when they need to be cut off. That simply means it only takes 4 drinks to get them to that point instead of 5.

Thus, if they are paying $3/drink, they spend $12 instead of $15 for the same amount of booze. The upshot: They give me $10 for the “hook-up”.

BTW, for the sure-to-come “You’re ripping off your boss” post: Short-pouring is just as common as over pouring. And, in every bar I’ve ever worked at least some over-pouring is assumed.

And lastly, probably 85% of ANY bars clientele is technically over the BAC. That doesn’t mean they can’t drive. 2 beers in one hour is over the BAC limit for the vast majority of folks around here. Body weight and tolerance make this a person-to-person debate.

I’m getting off the tipping topic, many apoligies. No hijack was intended. ~S

[The_Big_Cheese]

My cubemate got fed up with all the people having those tip jars out that she decided to put one out for herself. I can’t remember which establishment put her over the edge. We’re computer programmers, and she’s a bit of a joker.

So she took a jar, wrote TIPS on it and stuck it on the desk next to her cube. When someone comes in and asks a question, or borrows a book, you’ll often hear a nickel or a quarter into her jar. I think she’s up to over $2 now.

Personally I tip the ones who do a good job, and are paid the least, like this Mexican restaurant where they all speak Spanish and where they make the best burritos. Unfortunately, they’re the most surprised when they see it too.

[Johanna]

So can anyone answer my question about how much to tip at a buffet? One person’s personal opinion is to give a flat rate of one dollar because they brought him Coke.

In my case, we were brought water (we requested water because we don’t like pop), and we were brought hot freshly made nan roti, which was so good we asked for and got seconds on it. Now I suppose the cost of the bread was figured into the buffet price. But it was good to have hot freshly made nan brought to the table. When I tipped the restaurant lady 10%, I felt I was overdoing it. So what percentage is appropriate here? I ask because we go to this place a lot.

[Cinnamon_Girl]

Personally, in a restaurant setting, including a buffet, I would tip anywhere from 10% to 15% depending on how good the service was. What I value in service, IMO, includes courtesy of the server (if s/he was exceptionally pleasant the tip goes up), keeping my beverages filled and clearing plates, attention to problems (if there are any), making sure everything that should be on the table is before I sit down or as I sit down (so I don’t have to ask for it), and going above and beyond what I would expect his/her duties to be. Essentially showing exceptional customer service skills. Oh yes, and if the server disappears, never to be seen again, I will not leave a tip simply because I don’t think I received any service. Again, I believe tipping is optional and it’s also a message to the server.

Perhaps the question I would ask myself is, “Is tipping the custom in this instance.” If the answer is yes, then the above definition of service applies and I should tip I feel is a reflection of my satisfaction with said service.

I suggest that since you go there often, you inquire with the manager as to what the servers’ duties are and whether tipping in that establishment customary or expected. I don’t think he’d be offended or you should be embarrassed to ask. It’s likely the best (applicable) answer you’re going to get.

[Johanna]

Cinnamon Girl, I think the server at this Indian buffet was the manager, or the manager’s wife. This is a small place, everything on a modest scale. It’s more like an old-fashioned European table d’hôte than one of those huge American buffet joints. The lady was nice, although she performed the mininum amount of service. I mean the table had been supplied with paper napkins, and she came around once to offer refills on water and take our order for extra fresh bread. That was about it. She smiled at us. Wasn’t that worth a little tip? Would you say 10% was about right in this case? What would other Dopers tip at a place like this?