Tips

I always remove the auto gratuity on my bill when I eat and I tip what I think the server deserves for the level of service provided. It is most often more than what the auto gratuity is.

 

Please provide support for you claim that MOST tipped employees make more than minimum wage. In the end though that is irrelevant. A server tipping out a barkeep, etc is based on a percent of the tips he made. If a server gives me crappy service, the reduced amount that he gets and thus the reduced amount the of the barkeep's percent is not on me at all, it is on that server and it is between the server and the barkeep.

 

Trust me I have been in the service industry for a long time. If a server gives substandard service they will not last long. If you think you should tip someone any given amount simply because they are in a tipped position (and the quality of service thy give you is of no relevance) then by all means tip for crappy service. As for me, if you are a crappy server you will get a crappy tip. Sooner or later you will become a good server or you will find another job. I will not pay someone for not doing his job.

 

BTW I am not saying anything about a difference between gratuity and tips they are the same. I have no idea where that art of your comment even came from.

 

 

So you think it is OK for someone to assault a customer over a tip amount? wow...

Support for my claim that many bartenders/servers make more than minimum wage come from the fact that I have many friends who have been In those positions for years. And you are incorrect about the server only tipping out based on the amount of tips they made. At least in many corporate bars/restaurants those percentages are auto calculated by the total $ rung in. Has nothing to do with actual tips received.

The part of my comment that you reference that you say you don’t know where it came from...came from your statement: “if any business automatically charges you above the price of the product or service, then it is not a tip”. I was saying it absolutely is. Says right there in the line “gratuity”.

I understand that you will not tip on bad service. I was just explaining that I have a minimum tip no matter what. Not trying to change anyone’s mind.

Oh and lastly, I never said it was ok for someone to assault a customer over a tip. What I deem ok and what the reality may be are two different things. That being said, you don’t think they might spit in your food or drop something in the ground etc?

Have to sign off as I am boarding the Bliss today.

Cheers!

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A tip/gratuity is an extra given by choice for what the issuer considers above normal service. Normal service is included in the price of your meal etc. What cruiser man is trying to say is that he feels certain people tip whatever service they receive.

 

If a tip is expected, rather than seen as a bonus, then it may as well be included in the price of the meal etc.

 

I don't understand why you would feel compelled to tip?

 

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You are incorrect. At least in the USA. A tip is for service in general. All service employees are expected to be tipped. Is it a legal expectation? No. However it is the societal norm, hence expected.

I agree that it would be better if it were included in the price however that is not how it works in the USA.

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I guess you are a proponent of the modern thought process where 'everyone gets a trophy'.

 

Bottom line, the tipping system ensures the server works for the customer and makes them directly accountable to fulfilling those expectations in exchange for compensation.

 

Plenty of people in the real world have jobs that are directly tied to their performance. I worked years in an industry that was heavily commission based. I worked, and had to do a good job, to eat.

I absolutely am not a proponent of “everyone gets a trophy”.

I know what the tipping system was supposed to be designed for. However that is not the reality anymore. And yes I realize commission based jobs are performance related but there are many that are not where you might slack off one day and still receive the same amount of pay. That is not that much difference than a server who might just be having a bad day. In my opinion they don’t deserve to be penalized. You are free to think different.

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Negative....the cruise lines came up with the auto gratuity method because the industry changed. The long standing tradition of assigned servers is long gone and now you are more likely to be served by different people each night. Since there was no specific 'team' to tip at the end something had to change. The auto gratuity system was born changing the industry to a shared tip pool system.

 

 

 

They add it automatically because there really is not other logical way to do it. They also expect that service standards will be met by their employees since the entire environment is a service based experience. In the rare occasions it isn't then it can be addressed.

How is that any different than what I said?

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Any tips put on a credit card have to be claimed. Cash tips are a little different you have to claim some of it. My daughter is a bar tender and relies on tips for income. I know the U.K. culture is no tips. My sister tried to tip the the pub owner and he laughed. I had to explain it to her.

 

Candi

I always leave a cash tip of 10% of our total restaurant bill in the UK.

Most people leave tips but some are Tightwads and only leave small change or nothing at all claiming tipping is not in our culture!!!.

UK staff appreciate tips on top of the minimum wage they receive.

I always leave a cash tip of 10% of our total restaurant bill in the UK.

Most people leave tips but some are Tightwads and only leave small change or nothing at all claiming tipping is not in our culture!!!.

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Tipping to make up pay is not in our culture. Tipping to reward above average service is perfectly normal. That tip varies. As for the tightwad bit, haven't we paid more for the meal to ensure the server gets a fair wage.

 

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I always say no and give cash to the server at 10% of the bill but will give less if service was poor.

It is personal choice in the UK rather than compulsory in the US.

If they aren't making money, then it should be wake up call to them that they are not doing a good job and should step it up. I tip on good service, I don't tip just because someone's base salary is low.

I agree I will only tip for good service not just as a rule of thumb.

I always look in the UK if they have added a service charge and if they have and I have not had good service I will tell them to take it off.

A tip/gratuity is an extra given by choice for what the issuer considers above normal service. Normal service is included in the price of your meal etc. What cruiser man is trying to say is that he feels certain people tip whatever service they receive.

 

If a tip is expected, rather than seen as a bonus, then it may as well be included in the price of the meal etc.

 

I don't understand why you would feel compelled to tip?

 

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Ahhh. Thank you. That’s an easy one. Because I can. Plain and simple. Ever waited on others? I’m blessed now. I’m no longer the wait person. I get to tip those who serve me and feel blessed to do so. We travel with our daughters, now 17 and 21. Like my husband and I, they have their own cabin and their own stack of fresh USDs to tip people who SERVE them. I hope I am raising gracious and thankful young adults...

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Any tips put on a credit card have to be claimed. Cash tips are a little different you have to claim some of it. My daughter is a bar tender and relies on tips for income. I know the U.K. culture is no tips. My sister tried to tip the the pub owner and he laughed. I had to explain it to her.

 

Candi

ALL tips whether paid in cash or on a CC are fully reportable as earned income. Cash tips are no different than tips paid via CC/DC.

I think the difference may be tax. I'm not sure on any of this and I've no real idea on how the IRS works. The restaurant / diner owner will only pay tax on what they receive for their goods. So if they charge a smaller amount and then underpay their wait staff their tax bill will be smaller than if they charged more but paid their staff a decent wage. I'm not sure if there is any tax paid on tips received.

 

I still think our way is better just because it seems to cause less arguments, and you don't get chased half way down 9th Avenue because you only left a few pennies as a tip. :)

That is not the way it is. All tips are to be reported to the employer each pay period. The employer then calculates the withholdings based on the hourly wage and the earned tips. All tips are fully reportable as earned income to the IRS. Most do not actually do that, but that is what the IRS required. As for the sales/meals/other tax on the business owner, the tips are not relevant.

Does anyone know what the breakdown of the $17.50 gratuities are? They used to have it. We are thinking of giving them cash instead.

There is no specified breakdown, as NCL pays its crew members salaries, and uses part of teh DSC for that purpose, and other parts go to a crew welfare fund.

Any tips put on a credit card have to be claimed. Cash tips are a little different you have to claim some of it. My daughter is a bar tender and relies on tips for income.

Candi,

You must report ALL of your tips (cash or credit card). Reporting "some of it" is tax fraud. The IRS and California Department of Taxation would be interested in reviewing all of your daughter's tax returns to determine how much back taxes she owes (with penalty).

ALL tips whether paid in cash or on a CC are fully reportable as earned income. Cash tips are no different than tips paid via CC/DC.

Technically true but do you really think those receiving tips in cash, regardless of where they work do this? I know for a fact most do not, or certainly do not report all their tips.

IN MY HUMBLE OPINION there is no such thing as a minimum tip. If I go out to eat and the service is extremely poor, drinks never get refilled, server comes to the table MAYBE once every 25-30 minutes to see if we "need anything", and then when a request is made it takes another 30 minutes for the item(s) to be brought out, I will tip $0. If you are not doing your basic job I will not pay you. At the same time if you are a fantastic server and take care of us well you could easily get a tip of over 100%.

The practice is to leave a penny (or other coin) which sends the message that you did NOT forget to tip.

But remember NCL states the DSC is neither a tip or gratuity but instead what amounts to a labor surcharge

Technically true but do you really think those receiving tips in cash, regardless of where they work do this? I know for a fact most do not, or certainly do not report all their tips.

Uh the Wild West days of service staff pocketing cash tips and claiming nothing have been over for decades!

The IRS requires TIP ALLOCATION to tipped employees if insufficient tips are reported by servers, based on sales. Most servers know to fear a tip allocation as it can raise a flag with the IRS.

How far off we travel in these DSC threads.

But remember NCL states the DSC is neither a tip or gratuity but instead what amounts to a labor surcharge

Candi,

You must report ALL of your tips (cash or credit card). Reporting "some of it" is tax fraud. The IRS and California Department of Taxation would be interested in reviewing all of your daughter's tax returns to determine how much back taxes she owes (with penalty).

BirdTravels, are you on hold with 1-800-GET-HER!

I hear there's a reward for turning people in. Please come back and let us know how much you get!

DSC threads are always a good laugh at some point!

You can argue semantics of the word “tip” all day, but if my bill comes with a line item that says gratuity, that certainly is a tip no ifs ands or butts about it.

 

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You're right about tip vs gratuity

NCL is careful to use SERVICE CHARGE which is different on many levels.

That’s where we differ. 20% minimum.

 

Do you make less money if you have a less productive day? Or let’s say you had an argument with your boss will you take a pay cut?

 

 

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Raised here in the USA and in the hospitality industry close to two decades, customarily waitstaff are tipped 15% - 20% based on quality and level of service, lower than 15% for a buffet where you serve yourself.

Poor service SHOULD receive a reduced tip, perhaps well below 15%.

As for your "less productive day" analogy, you'd be sent home or laid off if business didn't warrant the labor, so yes, you'd make less. Just like the server that provides poor service.

Well you sir are in the minority. Other jobs the answer would be No. I realize people say, well maybe they will learn a lesson or do a better job, but you don’t know the circumstances behind the bad service. Maybe it took long because the kitchen was backed up. Maybe the server had other tables that were running them ragged. Maybe they were just having a bad day. I’m not going to penalize the a living wage just to make me feel better.

 

 

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While that appears merit full of you, know that a good server will inform you of kitchen delays or circumstances beyond their control, even being pro-active to have the manager stop by. The other server related issues impact the gratuity.

Let's face it: if your $45 steak you ordered rare arrives well done, are you going to say nothing and just eat it? After all, the broiler cook may be having a bad day, in the weeds, etc.

Tips are always optional, it is part of the basic definition of a tip. If any business automatically charges you above the price of the product or service then it is not a tip. BTW in the USA tipped employees do NOT 'depend on tips' to make up for their lower minimum wage. The employer is required by law to make up any short coming between the tipped employees lower minimum wage and the standard minimum wage that is not made up for by the actual tips earned. So no one gets 'stuffed'. Also that add on for parties of 6 (etc) can legally be removed in whole or it part or can removed and tipped directly by the customer.

Yes, Maniacal Cruiser, tipped employees DO 'depend on tips' to NOT ONLY make up for their lower hourly rate, but also more importantly, to earn their livelihood.

They do NOT have a "lower minimum wage," as you state.

In the USA for 2018, the current Federal Minimum wage is $7.25 hourly and employers are permitted to take a tip credit of up to $5.12 hourly, thereby paying tipped employees as low as $2.13 hourly. (More than half our states have adopted a higher minimum wage. I figured I'd add that to save a few extra posts by others.) So, tipped employees are subject to the SAME minimum wage as other employees.

After working in the hospitality industry for close to two decades --in positions ranging from tipped positions to executive level positions-- I can tell you with confidence that tipped employees are not coming to work expecting to only earn $7.25 hourly. That an employer has to perform on their lawful duty of waiving the tip credit due to lack of tips sufficient to offset the tip credit, the event causing this would be rare and extreme.

A good "tipped employee" understands that their position is a service position, and they are generally and customarily rewarded for "good service," which they strive to provide.

They also understand that they have to "take the good with the bad," as some customers -- through ignorance of custom, personal financial decisions, perception of poor service, etc. -- may not tip appropriately.

And as you say, if it's automatically added on, it's not a tip.

That's why NCL assesses a DSC: Daily Service Charge.

It's not a tip.

It's not a gratuity.

It's a labor cost offset, as defined in the Contract of Carriage and explained partially in the FAQ's on their website.

It's a labor cost offset, as defined in the Contract of Carriage and explained partially in the FAQ's on their website.

Ahhh....this crap again. All marketing speak.

All lines pay roughly the same salary level for positions. All collect roughly the same percentage from guest as a Daily Service Charge/Onboard Gratuity/Service Gratuity which is passed to the workers.

Same thing, different description.

You're right about tip vs gratuity

 

NCL is careful to use SERVICE CHARGE which is different on many levels.

That's why NCL assesses a DSC: Daily Service Charge.

 

It's not a tip.

It's not a gratuity.

Well in Europe where we have to book the Premium All Inclusive Package NCL specifically state that service charges AND Tips are included in our fare. This is taken from the NCL Web Page that describes the Premium All Inclusive Package.

Norwegian’s Premium All Inclusive cruising offers you an unparalleled sense of freedom with just so much included in the fare. Feel Free to enjoy a wide choice of premium alcoholic beverages in all bars, lounges and restaurants. Savour Lavazza speciality coffees served at meal times and relax because service charge and tips are also included

Does anyone know what the breakdown of the $17.50 gratuities are? They used to have it. We are thinking of giving them cash instead.

Who is 'them'?

I think the difference may be tax. I'm not sure on any of this and I've no real idea on how the IRS works. The restaurant / diner owner will only pay tax on what they receive for their goods. So if they charge a smaller amount and then underpay their wait staff their tax bill will be smaller than if they charged more but paid their staff a decent wage. I'm not sure if there is any tax paid on tips received.

 

I still think our way is better just because it seems to cause less arguments, and you don't get chased half way down 9th Avenue because you only left a few pennies as a tip. :)

Individuals have to pay tax on 'reported' tips. I ALWAYS tip in cash ... they can choose to report it or not. ALL tips added to a dinner bill and ON the credit card have to be/supposed to be reported.