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tip servers in cash or charge to your room?

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York, United Kingdom
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330 posts
3 reviews
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tip servers in cash or charge to your room?

hi.

when we charge a meal to our room, would the servers prefer to be tipped in cash or doesnt it matter and put the tip on our room charge.

the reason i ask is after recently having a meal in the UK. we asked our server the same question. he said, cash please. £5 in cash is £5 for me. £5 on the cheque is £4 for me and £1 in tax to the goverment.

if im tipping i want my server to receive as much from it as possible.

thanks

Irvine, California
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1. Re: tip servers in cash or charge to your room?

It really doesn't matter in terms of tax. In the US servers are taxed on their tips irrespective of how you choose to leave them, based on the total of the check.

But some people do prefer to tip in cash to ensure that the server gets all of it rather than part possibly being kept by the restaurant.

Edited: 30 April 2011, 11:06
USA
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66 posts
230 reviews
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2. Re: tip servers in cash or charge to your room?

But isn't your room bill taxed?

So anything you 'charge' to your room...wouldn't that be taxed? So if you tip 20 bucks, it's 20 bucks.

But if you charge it to your room....aren't you paying hotel tax on that 20 bucks?

Irvine, California
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3. Re: tip servers in cash or charge to your room?

There's no additional tax added to something charged to your room. If you charge a meal to your room, the amount that's charged includes the tax you'd pay regardless of how you're paying. Nothing is added further to that at any stage.

Hotel tax is applied to room rates and resort fees, not to room charges.

pittsburgh
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2,310 posts
14 reviews
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4. Re: tip servers in cash or charge to your room?

Cash! If you would by chance get your meals comped off at the end of your trip they can't comp the tip so you'd be paying it at the end anyways

minnesota
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1,255 posts
50 reviews
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5. Re: tip servers in cash or charge to your room?

In the USA, if you leave a tip on a bill, the server should recieve that exact amount in cash at the end of their shift. At least it was when I was a waitress.

Clarksville, IN
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2,338 posts
95 reviews
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6. Re: tip servers in cash or charge to your room?

Servers are supposed to report all of their tips, but most do not. They are only taxed on what is reported and other than that they only must report at least minimim wage. Tips that are left on credit cards have to be reported because there is a paper trail, but cash doesn't have to all get reported because the government has no way of knowing how much cash a server received. So if a server works a 4 hour shift they must claim at least minimum wage for those 4 hours (around $28 with our minimum wage), which if they receive all cash they can claim just the $28. But if they receive $50 in credit card tips and $20 in cash, then they would have to claim the $50. I would assume that charging it to your room would work the same way. I'm not positive though, but it's all around easier for the server if you leave them cash, then they don't have to wait to receive their tips later.

Melbourne, Australia
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2,142 posts
70 reviews
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7. Re: tip servers in cash or charge to your room?

If you want the server to definitely get the tip then give them cash.

Maryland
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for Las Vegas, Washington DC, County Donegal, Western Ireland
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50,727 posts
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8. Re: tip servers in cash or charge to your room?

"Servers are supposed to report all of their tips, but most do not. They are only taxed on what is reported and other than that they only must report at least minimim wage. Tips that are left on credit cards have to be reported because there is a paper trail, but cash doesn't have to all get reported because the government has no way of knowing how much cash a server received."

Not quite.

The casino properties in Las Vegas all have tip agreements with the IRS. Servers are taxed on an agreed upon percentage of sales. It makes no difference if you leave a server cash or put the tip on the card.

The last thing I'm worrying about on my vacation is what a server "prefers" in the method of tip payment or if they are trying to cheat on their taxes or not.

If I'm paying the bill in cash they are getting a cash tip. If I'm charging the bill, they're not.

Maryland
Destination Expert
for Las Vegas, Washington DC, County Donegal, Western Ireland
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50,727 posts
47 reviews
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9. Re: tip servers in cash or charge to your room?

"If you want the server to definitely get the tip then give them cash."

Maybe that's an issue in Australia? I know it is in the UK, for example. Where tips left on credit cards are legally the property of the restaurant owner.

In the US it's not an issue. Any restaurant who did not pay out servers from credit card tips would soon not have any employees.

vancouver,bc
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172 posts
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10. Re: tip servers in cash or charge to your room?

Can you ever go WRONG with cash?

If you want the server to get the tip TODAY, and not wait until payday (some places work that way) use cash. However, if its $10 today, or $15 on Friday 99.99 per cent of servers will take Friday.