How are auto gratuities distributed

Before the days of automatic gratuities when we did envelopes you knew that whoever you gave your money to. However now if you do automatic it's all done behind the scenes.

Does anyone know how the system works. Are the tips all pooled in one big fund and distributed from there or do they give your specific steward your tips? Do they take a service charge out of it before passing it on to their employees.

In the era of gratuities included for some bookings it has me wondering if they are really giving that money out the same as automatic gratuities. I think the idea behind OBC is there is so much markup that 100 OBC costs them much less than 100. However if they cover my gratuities their cost is face value unless they aren't actually putting it in the pool. I know it's possible the OBC could be used for tips too but my guess is most people spend it on other stuff.

I know tip postings can get heated and I can see both sides but I'm just curious how it all works.

Sent from my iPhone using Forums

Sorry I should of been more specific. I had seen the official distribution policy but i wondered if anyone had insider info of how they handle it.

Sent from my iPhone using Forums

why does it matter how a company handles payment to it's employees. :confused:

imo, if someone wants to know how an employee of the cruise line is paid simply get a job with said cruise line and you'll find out. :cool:

Before the days of automatic gratuities when we did envelopes you knew that whoever you gave your money to. However now if you do automatic it's all done behind the scenes.

 

I understand what you think you are saying, but that's not quite accurate.

You knew into whose hand you placed the envelope, but you didn't really know what happened to that money.

That person used to tip out other people who worked with him/her.

Just sayin'.

And that's the way it still works in restaurants: you may tip your waiter directly, but that waiter gives some of that money to the bartender, the bus person, etc.; you just don't see that happening, so you don't realize it's happening---but it is...

And that's the way it still works in restaurants: you may tip your waiter directly, but that waiter gives some of that money to the bartender, the bus person, etc.; you just don't see that happening, so you don't realize it's happening---but it is...

Depending on the restaurant this is not always the case. I have several friends here in town who are servers and the do not split their tips with any other service within the restaurant. They do however pay tax on tips paid with credit card. That is why when we dine out, we pay tips by cash so that they are not taxed on that.

So do the cabin stewards know that you've paid them in advance? I've read differing reports about the so called 'list'.

Before the days of automatic gratuities when we did envelopes you knew that whoever you gave your money to. However now if you do automatic it's all done behind the scenes.

 

Does anyone know how the system works. Are the tips all pooled in one big fund and distributed from there or do they give your specific steward your tips? Do they take a service charge out of it before passing it on to their employees.

 

In the era of gratuities included for some bookings it has me wondering if they are really giving that money out the same as automatic gratuities. I think the idea behind OBC is there is so much markup that 100 OBC costs them much less than 100. However if they cover my gratuities their cost is face value unless they aren't actually putting it in the pool. I know it's possible the OBC could be used for tips too but my guess is most people spend it on other stuff.

 

I know tip postings can get heated and I can see both sides but I'm just curious how it all works.

 

 

 

Sent from my iPhone using Forums

I've talked with crew and they are supposed to turn in cash tips to be shared with all crew

Sent from my iPhone using Tapatalk

So do the cabin stewards know that you've paid them in advance? I've read differing reports about the so called 'list'.

Not sure if they know if you have prepaid or are paying daily automatically. However they do know if you have removed auto tips.

Depending on the restaurant this is not always the case. I have several friends here in town who are servers and the do not split their tips with any other service within the restaurant. They do however pay tax on tips paid with credit card. That is why when we dine out, we pay tips by cash so that they are not taxed on that.

Not that they would ever get caught, but they are taxed on cash tips. If they choose to lie to the IRS and not pay those taxes then they are guilty of felony tax evasion, with a maximum penalty of $250,000 in fines and 5 years in prison. It's a technicality, I doubt if the IRS cares about anything that small on an individual level, but it is still illegal.

Not that they would ever get caught, but they are taxed on cash tips. If they choose to lie to the IRS and not pay those taxes then they are guilty of felony tax evasion, with a maximum penalty of $250,000 in fines and 5 years in prison. It's a technicality, I doubt if the IRS cares about anything that small on an individual level, but it is still illegal.

Maybe the IRS should pay more attention to the likes of people like Al Sharpton...Just saying! :p

I wondered if they turned in the cash. I read one post about how keeping cash wasn't a good option for cruise ship workers since they wouldn't want to hold onto a considerable amount of cash.

Are the employees even subject to Irs taxes?

Sent from my iPhone using Forums

maybe the irs should pay more attention to the likes of people like al sharpton...just saying! :p

:eek: :D :D

Before the days of automatic gratuities when we did envelopes you knew that whoever you gave your money to. However now if you do automatic it's all done behind the scenes.

 

Does anyone know how the system works. Are the tips all pooled in one big fund and distributed from there or do they give your specific steward your tips? Do they take a service charge out of it before passing it on to their employees.

 

In the era of gratuities included for some bookings it has me wondering if they are really giving that money out the same as automatic gratuities. I think the idea behind OBC is there is so much markup that 100 OBC costs them much less than 100. However if they cover my gratuities their cost is face value unless they aren't actually putting it in the pool. I know it's possible the OBC could be used for tips too but my guess is most people spend it on other stuff.

 

I know tip postings can get heated and I can see both sides but I'm just curious how it all works.

 

 

 

Sent from my iPhone using Forums

I am in no way cheap but I just feel like the cruise line is getting away with more this way meaning: it's easier for them to pay employees w/ said money and employees made out better when they were handed the money like back in the day. Oh well.

I am in no way cheap but I just feel like the cruise line is getting away with more this way meaning: it's easier for them to pay employees w/ said money and employees made out better when they were handed the money like back in the day. Oh well.

I would imagine, though I have no hard evidence, that the number of people who don't take off auto gratuities today are more than the number of people who voluntarily tipped before it was made automatic. That is to say, the number of people leaving a tip now is greater than it was before.

Part of the problem is also the unseen people; you didn't like your head waiter so you didn't leave him a tip, but that also stiffs the people who wash dishes, clean the tables, vacuum the floor. You don't leave a tip for your room steward and the people who wash your towels or sheets suffer. Also, with extra tips just left the waiter or steward is on the honor system to pool and share those tips. With auto grats, the people you don't see, but who work just as hard to make your vacation great, are guaranteed their share of the tips.

That's how I see it at least.

why does it matter how a company handles payment to it's employees. :confused:

 

imo, if someone wants to know how an employee of the cruise line is paid simply get a job with said cruise line and you'll find out. :cool:

Simply?

It's a lot easier to just ask other people that might already know the answer.

Sorry I should of been more specific. I had seen the official distribution policy but i wondered if anyone had insider info of how they handle it.

Pay periods are every 2 weeks. The gratuities for the cruise you get off will be given at the end of the pay period that is in.

Not that they would ever get caught, but they are taxed on cash tips. If they choose to lie to the IRS and not pay those taxes then they are guilty of felony tax evasion, with a maximum penalty of $250,000 in fines and 5 years in prison. It's a technicality, I doubt if the IRS cares about anything that small on an individual level, but it is still illegal.

Ship employees are taxed by the country from where they signed their contract with RCI. In American parlance they are 1099 contract (this is for the equivalent of hourly employees). Officers are in a similar situation but have better contracts.

Before the days of automatic gratuities when we did envelopes you knew that whoever you gave your money to. However now if you do automatic it's all done behind the scenes.

 

Does anyone know how the system works. Are the tips all pooled in one big fund and distributed from there or do they give your specific steward your tips? Do they take a service charge out of it before passing it on to their employees.

 

In the era of gratuities included for some bookings it has me wondering if they are really giving that money out the same as automatic gratuities. I think the idea behind OBC is there is so much markup that 100 OBC costs them much less than 100. However if they cover my gratuities their cost is face value unless they aren't actually putting it in the pool. I know it's possible the OBC could be used for tips too but my guess is most people spend it on other stuff.

 

I know tip postings can get heated and I can see both sides but I'm just curious how it all works.

 

 

 

Sent from my iPhone using Forums

My understanding is that the Gratuities that are charged (or pre-paid) to your onboard account are divided between the employee's that have no passenger contact and therefore do not receive tips from us. I saw that in a CC article a few years ago. I guess that it still is the case.

There is one person in Guest Services whos sole job is employee payroll and the distribution of funds but we'll never know how that procedure works.

Was there a sale on tipping threads this week?

Was there a sale on tipping threads this week?

You are ON FIRE today! :D

Your tips go to the folks who are supposed to get them. Don't worry about it. The staff is tipped, and you've done your duty! They have made it very easy for you...appreciate the ease!

I miss the good ole days when the best threads were about what to wear on formal night and the decline of Western Civilization in the MDR.