Tipping advice in USA

[KenzSailing]

5 hours ago, Parapara said:

Here was I thinking I might just cope with tipping in America, from the first replies to my query, and now all I read are horror stories and more confusion! I even had a nightmare about it last night and was wishing I had never left home. Maybe there is one positive to all this horror. Kids must learn the meaning of percentages at an early age! 
Please, please when you visit New Zealand do not tip. We don’t expect it or require it and most definitely do not want it creeping into our way of life.

 

Oh relax, and don't listen to the RW goobers on this thread.

 

It's easy:

 

In a taxi? Round up 10%

 

Porters? 5 bucks a  bag

 

Restaurant? 15 to 20% depending on your generosity

 

Relax, it'll be fine.

[pingpong1]

29 minutes ago, KenzSailing said:

 

Oh relax, and don't listen to the RW goobers on this thread.

"RW goobers"?  Definition please?

[papaflamingo]

18 hours ago, RachelG said:

Looking forward to our Japan cruise, where tipping is neither required or expected.  Here, I do tip, 15%for just ok, 20% if good.  But one problem with tips in cash at least here, is that they never report it on their tax forms and thus don’t pay taxes on it.  Totally unfair to the rest of us who pay income taxes on every dime we make.

You are actually required by law to report tip income.  The fact that someone cheats on their taxes isn't "unfair to the rest of us," it's ILLEGAL.  

 

17 hours ago, rallydave said:

You are correct Flossie. And it saves more than income taxes. Since social security taxes are paid equally by both the employer and employee. Both save by not paying that tax as well. 
 

There is a strong paying under the table culture in the US that also reduces taxes paid by millions if not billions. 

No one "saves by not paying" Social Security.  Social Security benefits are paid out based on the average amount one earns over their work life.  The more you earn, the more you pay, the higher the benefit when you start taking it.  So if an employee pays no Social Security, when they reach retirement age they get NO benefit.  But, according to the IRS:

"All cash tips received by an employee in any calendar month are subject to social security and Medicare taxes and must be reported to the employer"

So they ARE paying SS on the tips. 

Edited March 20, 2023 by papaflamingo

[rallydave]

Papa flamingo. Yes not reporting tips is illegal so is being paid in cash under the table that is not reported. Illegal aliens working is also illegal. Lots of illegal doings yet it continues year after year 

 

as to losing SS benefits of course that is true but many don’t care don’t know and want the money now and when they need it later they will set up go fund mes and collect from those of us paying all our taxes. 
 

You are 100% accurate in saying what people are supposed to do and what they lose after retirement but it does go on year after year and will continue until we go off the current tax structure and go to something like the fair tax that is a fair way to make this cheating as well as the rich using DLL the loop ho look es in the current structure. 
 

An easy solution that won’t happen because of lobbuests and the smaller government getting rid of the doubling size of the IRS. 

[papaflamingo]

5 hours ago, rallydave said:

Papa flamingo. Yes not reporting tips is illegal so is being paid in cash under the table that is not reported. Illegal aliens working is also illegal. Lots of illegal doings yet it continues year after year 

 

as to losing SS benefits of course that is true but many don’t care don’t know and want the money now and when they need it later they will set up go fund mes and collect from those of us paying all our taxes. 
 

You are 100% accurate in saying what people are supposed to do and what they lose after retirement but it does go on year after year and will continue until we go off the current tax structure and go to something like the fair tax that is a fair way to make this cheating as well as the rich using DLL the loop ho look es in the current structure. 
 

An easy solution that won’t happen because of lobbuests and the smaller government getting rid of the doubling size of the IRS. 

Apparently you missed my point.  I neither want to, nor will I get into a political discussion on these boards.  My only point was you stated that not paying taxes on tips or Social Security was "Totally unfair to the rest of us who pay income taxes on every dime we make."  If's not "unfair," it's ILLEGAL.  If you don't want to report your income to the govt., don't file a tax return or work a deal with your employer to pay YOU under the table and avoid all the taxes.  You aren't being "unfair" to me or anyone else, you're simply breaking the law and when caught, you'll be prosecuted and punished.  To suggest that people who are paid in tips or under the table  make some "gross amount" of money and don't pay any taxes is pretty unrealistic.  Pretty sure no waiter or field worker (legal or not) is cruising on a Regent cruise. 

Edited March 20, 2023 by papaflamingo

[22Club59]

Coming late to this topic - a few thoughts having worked as a barkeep many years ago and now travelling extensively internationally on business and pleasure. Tipping expectations and norms are greater in New York (and other large cities) than throughout America and greater in London than throughout United Kingdom and greater in Paris than throughout France. Equally the tipping norms and expectations are greater in luxury establishments (like the Four Seasons or The Ritz or The Carlyle or a ShangriLa).

[wcsdkqh]

Tip expectations aside, whether it’s urban or rural, if the service level isn’t stellar, or at least good, expectations will not be met.