Gratuities automatically billed vs. cash

[e2011]

If you tip an employee in cash, obvioulsy there are no payroll taxes taken out. But if you go with the automatic tips billed to your account, are those tips subject to withholdings and put on the employees paycheck? (Withholdings defined as those dictated by their country of citizenship, if any.)

[Biker19]

Calling on RCCL accountants........

 

Biker, who is surprised on how many different angles a tipping thread can have.

[blackshirt]

When you tip employees directly in lieu of auto gratuities, they are supposed to put that tip money into the same tip pool that auto gratuities go to. In other words, however they are distributed to employees, it will be the same. Only cash you tip beyond the auto gratuities are they allowed to keep is my understanding.

[LMaxwell]

When you tip employees directly in lieu of auto gratuities, they are supposed to put that tip money into the same tip pool that auto gratuities go to. In other words, however they are distributed to employees, it will be the same. Only cash you tip beyond the auto gratuities are they allowed to keep is my understanding.

 

This wives tale was debunked by guests on Navigator recently who asked the Hotel Director and were told ANY cash given to an employee is kept by the employee, no cash pooling and that is regardless if the guest pays into the auto-grats or not.

[Ourusualbeach]

If you tip an employee in cash, obvioulsy there are no payroll taxes taken out. But if you go with the automatic tips billed to your account, are those tips subject to withholdings and put on the employees paycheck? (Withholdings defined as those dictated by their country of citizenship, if any.)

 

There has been so much second and third hand information posted here that it would boggle your mind and some of it may actually be true however I cannot recall any first hand information directly from crew being posted here.

 

The only thing I know is that when I'm talking to the crew it always amazes me as to how many are doing their 5th, 10th or more contract with Royal. That tells me that something about the current system must be working or those folks would be working for another cruise line.

 

I'm going on vacation to relax and not to reinvent the wheel.

[Ned11]

This wives tale was debunked by guests on Navigator recently who asked the Hotel Director and were told ANY cash given to an employee is kept by the employee, no cash pooling and that is regardless if the guest pays into the auto-grats or not.

 

 

 

And by staff on the Oasis.

 

 

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[e2011]

I find that on all cruise lines I travel frequently, people are on their 5th, 10th or more contract. No surprise there since once you get into the routine of a certain employer its preferable to go back to them unless something is really bad.

[Ned11]

When you tip employees directly in lieu of auto gratuities, they are supposed to put that tip money into the same tip pool that auto gratuities go to. In other words, however they are distributed to employees, it will be the same. Only cash you tip beyond the auto gratuities are they allowed to keep is my understanding.

 

 

 

Debunked on Oasis. This was confirmed by staff that there is no such thing as a pool. They keep the cash that are given to them.

 

 

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[gerelmx]

I like to use the pre paid gratuities the @ the final payment day, and if I want to tip extra somebody give a envelope with the cash.

[e2011]

I always tip in cash as I suspected its more advantageous to the staff. Sounds like that is true.

[CruisingNole]

I asked several bartenders on Oasis how the whole tipping structure works out. Received consistent stories from all. The daily auto-grat goes into a pool for everyone, including many behind-the-scenes folks. Dollars written onto a tip line on a receipt go directly to the employee whose name appears on said receipt, aka whoever rang up the order. Employee then tips out others on the staff at his/her discretion (ex: the bar back, whom you rarely see, but plays a key role). Cash handed directly to employee is treated the same way.

 

I've worked at several hotels throughout my life, and this structure is common when you have an auto-grat plus additional tip situation.

[cb at sea]

Sharing part of your tips is common on land, too...when you tip a waiter in a restaurant, more often than not, they share with the host/hostess who seated you, and with the bar staff who makes your drinks, and with the bus people who clean your table......

Just tip as suggested and everyone gets their "cut".

[John&LaLa]

Debunked on Oasis. This was confirmed by staff that there is no such thing as a pool. They keep the cash that are given to them.

 

 

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You can see the tip jar in most the the DL's and CL's. They pool

 

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[melissam1347]

Does anyone know the answer to OP's question? Would be interesting to know if it is better for the crew member if we tip in cash vs auto and adding to tip line of receipt.

 

 

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[Ned11]

You can see the tip jar in most the the DL's and CL's. They pool

 

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What are DL’s and CL’s? The guys I spoke to don’t pool. I got a really stupid look off two members of staff as if I said something foreign.

 

 

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[mollyeilis]

What are DL’s and CL’s? The guys I spoke to don’t pool. I got a really stupid look off two members of staff as if I said something foreign.

 

 

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Diamond lounge and concierge lounge.

 

To “pool” tips, to a person who learned English as a second (third, fourth, etc) language, would indeed be foreign.

 

And thinking that one conversation means it’s been resolved vs all the other conversations where opposite info has been gleaned is folly.

[John&LaLa]

We were allowed to give a Diamond Lounge server an envelope if we did so at her other work station

 

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[Saab4444]

Does anyone know the answer to OP's question? Would be interesting to know if it is better for the crew member if we tip in cash vs auto and adding to tip line of receipt.

 

 

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An employer from a foreign country is not responsible to withholding income tax and social security amounts. Even if they want they are not able to calculate and pay this to a government in a country far away. This remains in the responsibility of the employee when back at home. He has to pay tax for his world income according to local law. How honest they (have to) handle tips remains with them. In most countries they declare a very small monthly lump-sum regardless of what they really earned.

 

 

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[Thorben-Hendrik]

Lets' face it...... grats are a scam to make the Americans overpay for everything - that's the whole purpose of the system and it apperantly works well - that is why all the secrets are kept... 🙄

[Saab4444]

Lets' face it...... grats are a scam to make the Americans overpay for everything - that's the whole purpose of the system and it apperantly works well - that is why all the secrets are kept... [emoji849]

 

 

 

That is very true! And on the other hand only Americans carry soda, water and wine on board to save a few bucks..

 

 

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[Ned11]

Diamond lounge and concierge lounge.

 

To “pool” tips, to a person who learned English as a second (third, fourth, etc) language, would indeed be foreign.

 

And thinking that one conversation means it’s been resolved vs all the other conversations where opposite info has been gleaned is folly.

 

 

 

Wind your neck in!

 

So the 8/9 members of staff I spoke to were talking rubbish??

 

Oh, and sarcasm doesn’t get get you anywhere.

 

Rude!!

 

 

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[Thorben-Hendrik]

That is very true! And on the other hand only Americans carry soda, water and wine on board to save a few bucks..

 

 

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LOL or rush to prepay grats to save a 1$ a day - yet boast here how they add SO much extra tip because the hard working, underprivileged crew deserves it! :rolleyes::p

[Oneluckywoman]

I just got a letter from my t/a saying that as of January 1, grats are going up to $14.50 a day.

[kerryincork]

In regards to tips. I think it more to do with contracts the crew have through agencies than paying tax.

 

I have heard that the agency the crew goes through get a cut of the crews basic pay but tips are exempt from this cut. So it works in crews favour to get a low basic pay which is then topped up by tips/service charge, whether this comes directly in cash or through the auto tips.

 

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