Daily Service charge clarification

[CRUZERWANNABE]

Hot topic on another board I follow, ....can anyone verify if the room stewards are included in the money from the daily service charge? Some are saying that the stewards see none of that money and it is expected they will be cash tipped. I have always been under the assumption that they DO get part of that money , and any cash tip is above and beyond. We always tip our steward, but if they in fact do not receive any of the daily service charge money, I want to make sure I am giving them enough.

[CRUZERWANNABE]

Hmmm, just came across another very recent thread regarding the Daily Service Charge. Why has this become so confusing?

[mianmike]

The DSC goes to NCL and NCL pays the room stewards thru salary and a measured incentive program.  So yes, a portion of your DSC goes to the stewards especially if the steward meets their incentive targets.  If you want to tip your steward for good service that would be great as it rewards and encourages the extra effort.    

[Love my butler]

1 hour ago, CRUZERWANNABE said:

Hmmm, just came across another very recent thread regarding the Daily Service Charge. Why has this become so confusing?

 

Because it is in NCL's best interest to make it confusing.  They have zero interest in clearing up the confusion.

[newmexicoNita]

Yes, a portion goes to them as well as to many other crew members. I believe it the amount they get might be based on several things, it isn't a cut and dry %. if you choose to tip them on top of the amount you have paid that is up to you. We normally do, but no one should an extra tip 

[ray98]

Yes...they are covered.  The only reason it is confusing is because cruisers stick their nose places it does not belong.  

 

Not one of the salary experts walk into their local restaurant and inquire about salaries, tips and how those tips are shared among the employees.

Edited April 1, 2019 by ray98

[perditax]

47 minutes ago, ray98 said:

Yes...they are covered.  The only reason it is confusing is because cruisers stick their nose places it does not belong.  

 

Not one of the salary experts walk into their local restaurant and inquire about salaries, tips and how those tips are shared among the employees.

 

On the contrary, since almost every counter-service restaurant at home I visit now has a an option to tip on their point of sale systems, I’ve made it a point to ask the cashiers if they actually see any of that money (since they’re the only person I’m interacting with). The answer is always “no”. It’s just extra money for the owners. 

 

As a consumer, yes, we get to ask. Of course, the companies can always lie.

[tomk3212]

Room stewards ARE covered by the DSC but as many others have pointed out don't be shy about giving your room steward extra $$ for good service.  We tip ours extra, as appropriate. 

 

Also you can write them up as a "Cruise Hero" (or whatever NCL is now calling it ) and cite them for being one of YOUR "Heroes" (or "Heroines") on your particular cruise for going above and beyond in customer service.   I know for a fact that such employees get more $$ from the DSC pool.

[erdoran]

To be clear about DSC - it is positioned by cruise lines as INSTEAD OF having to tip as you go.  There is no OBLIGATORY tipping required for stewards, or other DSC staff over and above DSC.  You may absolutely tip more if you are extremely satisfied and many on these boards would encourage you to do so, but it isn't their money.  

 

I think there's an obligation to pay the DSC, the same way there's an obligation to tip in a restaurant.  There is NO obligation, much as cruise staff would like there to be, to tip over and above.

 

From what NCL publishes, the stewards ARE included in DSC so you aren't stiffing them if you leave nothing extra.  You have paid hundreds over and above your fare in DSC.

 

Exception is, of course, non-DSC staff:  butler, concierge, kid's club who should be tipped based on your satisfaction with their work, assuming you have used their services.

[erdoran]

3 hours ago, perditax said:

 

On the contrary, since almost every counter-service restaurant at home I visit now has a an option to tip on their point of sale systems, I’ve made it a point to ask the cashiers if they actually see any of that money (since they’re the only person I’m interacting with). The answer is always “no”. It’s just extra money for the owners. 

 

As a consumer, yes, we get to ask. Of course, the companies can always lie.

That's despicable.  I for one appreciate knowing that.  I am glad to tip employees who deserve it, I have no intention of tipping owners after I have already paid them through the price of an item.  I'll make a point of NOT adding a tip on POS in the future.

[PTC DAWG]

2 minutes ago, erdoran said:

That's despicable.  I for one appreciate knowing that.  I am glad to tip employees who deserve it, I have no intention of tipping owners after I have already paid them through the price of an item.  I'll make a point of NOT adding a tip on POS in the future.

Every business with a tip jar doesn’t operate exactly the same way...

[erdoran]

Tip jar is different than POS tips - those are charged to your credit card and the owner should hand them out.

 

Yep, I'm sure not 100% of the POS tip places do that - but for myself, to be safe, I'll just hand a cash tip to the cashier/server if I want them to have it.

[CRUZERWANNABE]

Thanks everyone, at least now I don't feel like a heel for not tipping enough based on them not receiving anything. I will continue to tip beyond the DSC.

[latebloomer56]

45 minutes ago, erdoran said:

That's despicable.  I for one appreciate knowing that.  I am glad to tip employees who deserve it, I have no intention of tipping owners after I have already paid them through the price of an item.  I'll make a point of NOT adding a tip on POS in the future.

I never knew that so glad we always leave a cash tip when we use a CC for the meal. Thank you for sharing that tidbit. Will have to check with our niece and see if that is the norm.

[jakesnana]

5 hours ago, perditax said:

 

On the contrary, since almost every counter-service restaurant at home I visit now has a an option to tip on their point of sale systems, I’ve made it a point to ask the cashiers if they actually see any of that money (since they’re the only person I’m interacting with). The answer is always “no”. It’s just extra money for the owners. 

 

As a consumer, yes, we get to ask. Of course, the companies can always lie.

 

This has changed drastically since I was a server. When people would put the tip on their credit card, we saw how much was tipped on the credit cards and given that amount of money at the end of each shift.  I wonder about the info you were given.  If the owners of these dining establishments KEEP the money that was designated to go to the server, that amounts to stealing :(

[Von & John]

Regarding tipping @ the POS - some of the EE's may be mistaken with their response.  Many US companies no longer tip-out @ the end of the shift for credit card charges for a couple of reasons.  My understanding is:

• In the US - if the tip is on the credit card, it's the employers responsibility to ensure taxes are paid on the compensation.  Therefore, many employers are now including the tips in the paycheck & taxing appropriately.
• With counter type service (Coffee House, Quick Service Rest...) - many establishments pool the tips & they are then paid out at payday (in their check) or cash weekly.
• If the credit card charge is later contested & the employer is out the funds for the tip, they have recourse through the paycheck.  This mainly happens when a service person adds a tip - that the customer did not approve...

When we pay with a credit card & opt to tip in cash - we note "cash" on the tip line.  We once had a server add a tip to our credit card - after we had tipped in cash.  So our solution is to simply note "cash" on the tip line.

[zqvol]

18 hours ago, CRUZERWANNABE said:

Hot topic on another board I follow, ....can anyone verify if the room stewards are included in the money from the daily service charge? Some are saying that the stewards see none of that money and it is expected they will be cash tipped. I have always been under the assumption that they DO get part of that money , and any cash tip is above and beyond. We always tip our steward, but if they in fact do not receive any of the daily service charge money, I want to make sure I am giving them enough.

 

The stewards and all crew on NCL are paid a decent wage. They do not necessarily see anything out of the DSC, but it is used for a variety of factors. NCL crew does not depend on tips for their wages, nor do they depend on the DSC. Any tips that they are given are theirs to keep.

Edited April 2, 2019 by zqvol

[sanger727]

I’ve never worked as a cashier so no idea how those POS tips get distributed. As a server though, we definitely got tips (whether voluntary or auto charged) that were on a credit card. Throughout the night we took a combination of tips and meal payments in cash, and at the end, cashed out with the restaurant where I owed the cash meal payments minus the credit card tips they owed me.

[fshagan]

22 hours ago, erdoran said:

That's despicable.  I for one appreciate knowing that.  I am glad to tip employees who deserve it, I have no intention of tipping owners after I have already paid them through the price of an item.  I'll make a point of NOT adding a tip on POS in the future.

 

In the US, state laws regulate this, so your state might differ. Nationally, the IRS differentiates between a "tip" and a "service charge" with different tax treatments. Automatic gratuities are considered income for the business and must be reported as such, and then the payout to the employees are considered regular wages and not tip income (meaning the business pays higher taxes on those amounts because of unemployment compensation, etc.)  So if the line is an amount you fill in, rather than having automatically applied, and is not called a service charge, it is usually a tip that goes to the employee. If it doesn't, the business is cheating on their taxes.

 

It's been a few years since I was a tax guy, so some of this may have changed, or I might be off in some detail, but that's close, anyway. So, the business is paying income tax on the service charge amount, whereas a tip you give as cash to an individual is not counted as income for the business.

 

But, none of that applies to NCL. They don't pay any corporate income tax on any income related to on-board revenue, including your cruise fare, DSC, or onboard purchases.