Cancelling prepaid gratuities

[kassimer1]

This has been brought up for years, but that would be too easy. That would also eliminate all the snarky comments, both ways for and against. The cruise lines must like it when their customers get all riled up over an issue they could easily remove from the equation.

I would like to know the real reason they don't do it.

 

taxes -- if they added the 12$ a day to the cruise price they would pay a percentage of that in taxes making less of a profit if they gave the 12 $ to the staff. or the staff would not get the full 12$.

[MicCanberra]

How exactly are they dodging taxes? The cruise line takes it in as income then takes it right back off as a deduction just like regular payroll. Because it is now documented income, the crew would have to claim all their tips except maybe extras given to them in cash.

 

The onus is on the crew not the company to declare the tips.

[orville99]

How exactly are they dodging taxes? The cruise line takes it in as income then takes it right back off as a deduction just like regular payroll. Because it is now documented income, the crew would have to claim all their tips except maybe extras given to them in cash.

 

You all do realize that RCL is a foreign corporation, and doesn't pay any U.S. Income tax, and that its staff (with the exception of a small % of officers) are also not paid as U.S. taxpayers, so they would not pay any U.S. income tax either. They may not even pay income tax in their home country, since their income is "ex-pat". Also, once a ship clears U.S. waters, it doesn't even collect sales tax on anything it sells.

 

A gratuity is not a tax. And unless you are in the U.S. and working inside the country, it is also not subject to declaration to the IRS.

[CruisesOnMyMind]

You all do realize that RCL is a foreign corporation, and doesn't pay any U.S. Income tax, and that its staff (with the exception of a small % of officers) are also not paid as U.S. taxpayers, so they would not pay any U.S. income tax either. They may not even pay income tax in their home country, since their income is "ex-pat". Also, once a ship clears U.S. waters, it doesn't even collect sales tax on anything it sells.

 

A gratuity is not a tax. And unless you are in the U.S. and working inside the country, it is also not subject to declaration to the IRS.

 

I have to admit I have not read every post on this thread, but I have the jist of it....my question is are crew paid in USD's no matter what waters they are in?

[MicCanberra]

I have to admit I have not read every post on this thread, but I have the jist of it....my question is are crew paid in USD's no matter what waters they are in?

 

I would suspect so.:D

[orville99]

I have to admit I have not read every post on this thread, but I have the jist of it....my question is are crew paid in USD's no matter what waters they are in?

 

My expectation is that they would have some system analogous to a direct deposit of the salaries rather than have to deal with crew having to find a place to cash paychecks, and that the direct deposit would be in U.S funds.