Tipping

[Ocean Boy]

1 minute ago, John&LaLa said:

 

They just need to call it what it is. A Service Charge or a Resort Fee

Then people can post about how much they tip the staff in addition to the service charge. It will make for great reading.

[John&LaLa]

Just now, Ocean Boy said:

Then people can post about how much they tip the staff in addition to the service charge. It will make for great reading.

 

Umm, aren't we already bringing that up ad nauseam🤔

[3kidsncats]

On 5/22/2021 at 4:45 AM, John&LaLa said:

 

They just need to call it what it is. A Service Charge or a Resort Fee

I agree — if they are formally trying to structure employee compensation thru an additional fee paid separately by passengers, it should be noted as a service fee.  A gratuity is something else

[Qextor]

On 5/22/2021 at 4:45 AM, John&LaLa said:

They just need to call it what it is. A Service Charge or a Resort Fee

They can't.  If tips become a required fee, that fee is considered income and is then taxable.  Tips become the income of the employee receiving them, and will be taxed accordingly.  This is why cruise lines will never make tips mandatory - it's a tax issue.

[Seville2Cabo]

11 minutes ago, Qextor said:

They can't.  If tips become a required fee, that fee is considered income and is then taxable.  Tips become the income of the employee receiving them, and will be taxed accordingly.  This is why cruise lines will never make tips mandatory - it's a tax issue.

Cash tips are considered income and are taxable.  Not much change for the employee,  but may do better with a required resort “fee”.  

[Biker19]

18 minutes ago, Qextor said:

This is why cruise lines will never make tips mandatory - it's a tax issue.

Careful with absolutes - even RCI itself includes (or makes mandatory) tips within the cruise fare out of some markets, like Australia. And then, there are whole lines, like Virgin and luxury lines (like RCG's own Silversea), where grats are included.

[John&LaLa]

6 minutes ago, Qextor said:

They can't.  If tips become a required fee, that fee is considered income and is then taxable.  Tips become the income of the employee receiving them, and will be taxed accordingly.  This is why cruise lines will never make tips mandatory - it's a tax issue.

 

I didn't think cruise lines paid taxes on income

[Qextor]

1 hour ago, Biker19 said:

Careful with absolutes - even RCI itself includes (or makes mandatory) tips within the cruise fare out of some markets, like Australia

Fair enough.  I did over speak.