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New Gratuity norms: What's in them for salaried class
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A gratuity (also called tip ) is the amount of money normally given by clients or customers to service workers, in addition to the base price. Tipping is typically provided to certain service sector workers for services performed or anticipated, compared to money offered for a product or as part of a purchase price. Depending on the country or location, it may or may not be customary for tip servers in bars and restaurants, taxi drivers, hairdressers and so on. This exchange is usually irreversible; distinguish it from the reward mechanism of the placed order, which can be restored.

Their tips and numbers are a matter of custom and social etiquette, and their habits vary between countries and settings. In some locations tipping is not recommended and considered offensive; while in some other locations tipping is expected from customers. The typical number of tips can be a certain amount of money or a certain percentage of the bill based on the perceived quality of the service provided.

In some circumstances, such as with US government workers and more with police officers, receiving gratuities (or even offering them) is illegal: they can be considered a bribe. Fixed percentage service fees are sometimes added to bills in restaurants and similar companies. Giving a tip may not be expected when charges are explicitly billed for services.

From a theoretical economic perspective, gratuities can solve principal-agent problems (situations where agents, such as servers, work for principals, such as restaurant owners or managers) and many managers believe that tipping provides incentives for larger worker endeavors. However, the study of real-world practice suggests that tips are often discriminatory or arbitrary: workers receive varying degrees of gratuity based on factors such as age, sex, race, hair color and even breast size, and the percent size found to be only very weak with quality service.


Video Gratuity



Etymology and history

According to the Oxford English Dictionary , the word "tip" is derived as a slang term and its etymology is unclear. According to the Online Etymology Dictionary, the meaning of "giving small money prizes" began around 1600, and the meaning of "giving gratification for" was first proven in 1706. The noun in this sense is from 1755. The term in the sense of " give gratification "first appeared in the 18th century. This comes from the previous taste of the tip, which means "giving, to hand, pass", originating from the bandits' in the 17th century. This meaning may have originated from a 16th century "tip" which means "to attack or smite but mildly" (which may be derived from German Low tippen , "to knock") but this derivation is " Very uncertain ". The word "tip" was first used as a verb in 1707 in the drama George Farquhar The Beaux 'Stratagem . Farquhar used the term after "used in criminal circles as a word intended to imply giving something unnecessary and haphazard something taboo, like a joke, or a sure bet, or for illicit money exchange."

Tipping practice starts at the British Tudor. "In the 17th century, it was expected that guests who overnight into private homes would give some money, known as vails, to the hostesses." Soon after, customers began to tip in London and company coffeehouses other commercial ".

Etymology for synonyms for tipping, "gratification", dates back either to the 1520s, from "elegance", from the French gratuitÃÆ'Â © (14th century) or directly from the Latin of the Middle Ages gratuity , "free gift", possibly from Latin gratuitus , "free, given free". The meaning of "money given for good or service" was first demonstrated in the 1530s.

In some languages ​​this term translates to "drink money" or something similar: for example pourboire in French, Trinkgeld in German, drikkepenge in Denmark, and napiwek in Polish. This comes from the habit of inviting a drinking maid to honor the guest, and paying it, in order for the guests to show generosity to one another. The term bibalia in Latin was recorded in 1372.

Maps Gratuity



Tronc

Tronc is an arrangement for collection and distribution to employee tips, gratuities and/or service charges at hotels and catering trades. The person who distributes money from tronc is known as a troncmaster. When a tronc is in the UK, the responsibility for reducing the pay-as-you-earn tax from the distribution may lie with the troncmaster rather than the employer. The word "tronc" has its origins in France to collect boxes. In June 2008, the Employment Appeals Court ruled in the Revenue and Customs Commission Annabel's (Berkeley Square) Ltd case that revenue from tronc can not be calculated when assessing whether wages or salaries meet the national minimum wage.

Payment of Gratuity Bill 2017 Approved, Gratuity Ceiling Increased ...
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By region

Africa

Nigeria

In Nigeria, tipping is not so common in upscale hotels and restaurants because service fees are usually included in bills even though employees rarely get this as part of their wages. But in recent times, service providers usually force customers to tips in a subtle way. There is a security guard case report asking bank customers to get a tip.

Asia

China

In China, there is traditionally no tipping. However, hotels that routinely cater to foreign tourists allow a tip. Examples are tour guides and associated drivers.

Hong Kong

In Hong Kong, typing is usually not expected at a hotel or restaurant company, where a "service fee" of 10% is added to the bill instead of expecting gratuities. Taxi drivers in Hong Kong may also charge a difference between the cost and the round amount as a "free fee" to avoid larger bill changes.

Japanese

 Tipping culture is not done in Japan and can cause confusion or humiliation if tried without using envelopes. Like many other countries in East Asia, the Japanese see tipping as insulting. But that's mostly because Japanese people traditionally receive tips in special envelopes.  

India

Indonesia

In Indonesia tipping is common in large tourist areas, such as Bali or Lombok. 10% is expected in the full-service restaurant. The tipping bar is discretionary and depends on the style of the bar: in Bali, most bars are owned by expats and, usually, the expat country of origin reflects the style of the bar. Pub does not expect tip. Restaurant - 10% to 15%. The upper class bar receives over-the-counter cash tips in any amount. Parlous massage, located almost in every corner of Bali, is expected to be 10% -20%. Taxi drivers expect 5%. Bellboys in upscale hotels expect about $ 1 per bag.

Malaysia

In Malaysia tip is not the norm and is not expected in any service. Otherwise the restaurant may add a 10% service charge to the bill. In Malaysia people are used to tipping, so if someone leaves a tip then it is accepted and appreciated. When tipping is usually done by rounding up the bill.

South Korea

Unusual tip in Korean culture, and tip-giving is not expected in the general service industry. Some people even consider tipping an inappropriate behavior. Hotels and upscale restaurants often include a 10% to 15% service charge, but are always included in the bill and unexpected customers leave separate gratuities for servers beyond what is included in the bill.

Singapore

In Singapore, tipping is not done and is rarely expected in many ways. However, bars and restaurants typically add a 10% service charge, which is aggravated by 7% of Goods & amp; Tax Service, although not given to the waiting staff. The tipped taxi driver will think that the excess cash and restore the right changes.

Taiwan

In Taiwan, tipping is not uncommon, but all middle and upper class restaurants include "mandatory 10% service fee", which is not given to service staff, but more considered by Taiwan law as general income, as reported by the Taipei Times. at "False Gratuity" on July 9, 2013.

Europe

Albanian

Tipping ( bakshish ) in Albania is expected almost everywhere. Lately it has become more common, as many foreigners and Albanians living abroad visit Albania. Leaving a tip of about 10% off the bill was a habit in the restaurant; even porters, guides, and drivers expect tips. Duty-free alcohol is often used as a tip for porters, bellops and the like, but some people (like Muslims) can consider it offensive.

Croatian

Tips (napojnica, man? A, tip) are sometimes expected, mostly in restaurants - but they are not mandatory. Tip the restaurant about 3-5% (or more). In clubs or cafes, on the other hand, it is common to "collect bills". It is not uncommon to find a taxi driver or a hairdresser.

Denmark

Tip ( drikkepenge , lit. "drink money") is not required in Denmark because the cost of the service should always be included in the bill by law. Tipping for exceptional service is a matter of preference, but not expected.

Finnish

In Finland tipping is not customary and never expected.

French

CafÃÆ'Â © s and restaurants include a 15% service charge in the bill, as required by French law for tax assessment. The Service consists indicates that the tip has been added to the bill, but sometimes the wait staff does not accept any of it. Better tipping is acceptable in places commonly used by tourists, but can be treated with disdain at smaller food companies and those in rural areas. The number of tips is also very important. A 5% tip would be fine for good service. For superior service in upscale dining places, a more generous tip will not get out of place. However, rare waiters accustomed to more generous foreign customers have no problem receiving tips for up to 10% or more.

Austria and Germany

Tipping (Trinkgeld) is not considered a liability. In the case of wait staff, and in the context of the debate on minimum wages, some people disagree on the tip and say that it should not replace an employer who pays a good basic wage. But most people in Germany consider tips to be good manners and a way to thank them for good service.

It is illegal, and rare, to charge a service fee without the customer's consent. But a tip of about 5% - 10%, depending on the type of service, is a habit. For example, Germans usually tip their maids but hardly ever have a cashier in a big supermarket. As a rule of thumb, the more personal the service is, the more common it is to tip. Payment by card may include a tip as well, but the tip is usually paid in cash when the card is submitted.

Sometimes, instead of tipping individually, a tipping box is set up. Rounding bills in Germany is common, sometimes with a stimmt so comment ("keep changes"), instead of asking for all changes and leaving a tip afterwards. Or the customer says how much he will pay in total, including tip: so if the base price is EUR10.50, the customer may be, rather generous but not extraordinary, say zwÃÆ'¶lf ("twelve" ), pay with EUR20 records and earn EUR8 in the change. When paying small amounts, you usually collect to the nearest euro (eg EUR1.80 to EUR2.00).

Sometimes the Aufrunden bitte punctuation ("round") is found in places where tipping is uncommon (such as supermarkets, clothing retailers, etc.). This requests that the charge be rounded up to the nearest EUR0.10. This is not to tip staff, but charitable donations (fight against poverty of children), and fully volunteer.

In Germany tips are considered as income, but they are tax free according to Ã,§ 3 Nr. 51 of the German Income Tax Law.

Hungarian

The Hungarian word for tip is the borravalÃÆ'³ (literally "money for wine", a loose calque from German: > Trinkgeld ) or colloquially bax > (from Persian: ???? ? bakhshesh ), often written in English as backsheesh. Tipping is widespread in Hungary, expected levels and expected numbers vary with price, type and quality of service, also influenced by customer satisfaction. As in Germany, collecting prices to tip is common.

Depending on the situation, tipping may be unusual, optional or expected. Almost all bills include service charges - equally, some employers calculate wages on the basis that employees will also receive tips, while others forbid receiving them. In some cases, a tip is only given if the customer is satisfied, the other usually gives a certain percentage regardless of the quality of the service, and there are situations when it is difficult to distinguish them from bribes. Broad tipping based on loosely defined habits and its almost invisible transition into bribery is considered a major factor contributing to corruption. A specific Hungarian gratuity case is hÃÆ'¡lapÃÆ' Â © nz ("thanksgiving") or paraszolvencia , which is highly expected - almost mandatory despite illegal tipping from doctors working in the country (the Hungarian health system is almost entirely state-run and there is a compulsory social insurance system).

Iceland

In Iceland tipping ( ÃÆ'¾jÃÆ'³rfÃÆ' Â © , lit. "serving money") is not customary and was never expected. Foreign tourists sometimes still think without thinking because it is a habit in their home country. Tour guides in Iceland also sometimes encourage guests to tip, but there is no requirement to do so.

ireland

It is not uncommon for an Irishman to tip a taxi driver or a cleaning staff at a hotel. Tips are often given to reward high quality service or as a good attitude. Tipping is most often done by leaving small changes (5-10%) on the table or rolling up the bill.

Although it has been quoted that the taxi driver's tip is typical, it's not common in practice.

Italy

The tips ( la mancia ) are unusual in Italy, and are only given for special services or as a thank you for high-quality, yet highly unusual service. Almost all restaurants (with the exception of people in Rome) have a service charge (called coperto and/or servizio ). Since restaurants are required to notify you of any fees they charge, they usually include coperto/servizio on the menu.

Norwegian

Service/service charges are included in the bill. It is not uncommon for a Norwegian to tip a taxi driver or a cleaning staff at a hotel. In restaurants and bars it is more common, but not expected. Tips are often given to reward high quality service or as a good attitude. Tipping is most often done by leaving small changes (5-15%) on the table or accumulating bills.

Oslo ServitÃÆ'¸rforbund and Hotell-og Restaurantarbeiderforbundet (Trade Union for Hotel and Restaurant Employees) have said many times that they do not tip, except for extraordinary service, because it makes payrolls decrease over time, making it more difficult to negotiate on salaries and not counting pensions, unemployment insurance, loans, and other benefits.

Netherlands

Tipping ( fooi ) in the Netherlands is not mandatory and it is illegal, and rare, to charge service fees without customer consent. However it is made to believe that tip is required in restaurants, bars, taxis and hotels (bars, restaurants, waiters and bellboys). If the service is normal or poor, it is normal to not tip, while guests who receive excellent service to excellent can tip in the 5-15% range, with an average of 10% and very 20% if service is unrivaled. Around 1970, regulations were adopted that all prices shown should include service fees. As a result, all prices are raised by about 15%. This is called "composed service". Also the wage is adjusted that the employee does not depend on the tip.

Romanian

The number of tips ( bac? I? ) and the counting method will vary with place and may vary from 1-2 RON to 10% of the bill. Tips do not appear on the bill and are not taxed. If paying by card, the tip will be left in cash next to the bill. While tipping is not the norm, servers, taxi drivers, hairdressers, hotel maids, parking taxis, tour guides, spa therapists, and others. used to receive tips regularly, and tend to regard them as expressions of appreciation for the quality of service (or lack thereof). If offering a tip, 5-10% of the bill is customary, or a small amount of 5, 10, or 20 RON for services that are not directly billed. For other types of services depending on circumstances; it will usually not be denied, but it will be regarded as a token of appreciation. For example, desk clerks in drug stores or supermarkets are not ending, but their counterparts in a clothing store can.

Tipping can be used proactively to generate goodness, such as getting a reservation or getting a better seat. However, care must be taken not to be seen as a bribe, depending on circumstances. While tipping is ignored in Romania, bribery is a bigger problem that may have legal consequences. There is an ongoing reluctance to give and receive tips in coins, because of the low denominational value. It's best to stick to paper money. Offering coins can be considered as an impolite gesture and can trigger sarcastic or even angry remarks.

On the other hand, the reluctance of handling coins has resulted in widespread practice of round payments. This is not a technical tip, and therefore is not aimed primarily at individuals at the counter, but on business. However, if done with a smile it can be seen as a form of appreciation from customers to the officers. Etiquette requires that one party offer a change, but the other may elect to notify them to keep all or part of it. Small businesses can sometimes force problems by simply claiming that they have not changed, or offering a small value product instead, such as chewing gum; this is considered rude and it's up to the customer to accept or call them for it. The reverse can also happen, where officers have no small changes to make customer banknotes, but choose to restore smaller paper denominations and round up the customer's favor, in exchange for getting them through faster. The latter usually only happens in larger chain stores.

Russian

In Russian, a gratification is called chayeviye , which literally means "for tea". Giving small amounts of money in Russia to people like waiters, taxi drivers and hotel bellboys was quite common before the Communist Revolution of 1917. During the Soviet era, and especially with the Stalinist reform of the 1930s, tipping was not suggested and was considered a Capitalist Tradition offensive aimed at underestimating and degrading working class status. So from that time until the early 1990s, tipping was considered rude and offensive. With the fall of the Soviet Union and the dismantling of the Iron Curtain in 1991, and the entry of foreign tourists and businessmen into the country, tipping started a slow but steady comeback. Since the early 2000s, tipping has become the norm again. However, there is still a lot of confusion emerging around tipping: Russia does not have broad consensus about how much to tip, for what services, where and how. In larger urban areas, such as Moscow and St Petersburg, a 10% tip is expected in upscale restaurants, coffee shops, bars and hotels, and is usually left in cash on the table, after the bill is paid by credit card; or as part of a cash payment if a credit card is not being used. Tipping on a buffet or other budget restaurant, where no server to pick up your order at the table (called stolovaya ) is unexpected and inappropriate. Fast-food chains, such as McDonald's, Chaynaya Lozhka, Kartozhka, and so on, do not allow tip-giving. The bartender's exterminator in the pub is not common, but is expected in the up market bar. The metered taxi drivers also rely on a 5% -10% tip, but non-metered drivers who pre-negotiate tariffs do not expect one. It should also be noted that the older Russians, who grew up and lived most of their lives during the Soviet era, still regarded the hoax of offensive practices and hated it. In smaller rural towns, tipping is rarely expected and can even lead to confusion.

Slovenia

Tipping is not common in Slovenia, and most locals do not tip other than to collect to nearby Euros. Since about 2007, the area visited by many tourists has started receiving tips about 10-20%.

Spanish

Tipping ( propina ) is generally not considered mandatory in Spain, and depends on the quality of service received. In a restaurant, the number of tipping, if any, depends greatly on the local type, a higher percentage expected in upscale restaurants. In the small bars and restaurants, the Spaniards sometimes leave as little tip change is left on their plates after paying the bill. Outside of the restaurant business, some service providers, such as taxi drivers, hairdressers, and hotel personnel, may expect tips in upscale settings. In 2007, Economy Minister, Pedro Solbes, blamed the excessive tipping for an increase in the inflation rate.

Swedish

Tipping ( dricks ) is usually not expected, but it is practiced to reward high quality service or as a good gesture. Tipping is most often done by leaving small changes on the table or rounding up the bill. This is mostly done in restaurants (more rarely if payments are made at the table) and in taxis (some taxis are very expensive because there is no fixed rate, so they may not end up). Less frequent hair stylist tip. Tips are taxed in Sweden, but cash tips are not often announced to tax authorities. Cards are widely used in Sweden in the 2010s, and tips paid with cards in restaurants are regularly checked by tax authorities. There are reports that the owner of the restaurant keeps the card tips and the waitress is not paying attention to generous card tips.

Turkish

In Turkey, give a tip, or bah? I? (lit prizes, from the Persian word ????, often translated in English as "baksheesh") are usually optional and unusual in many places. While not necessary, a 5-10% tip is rewarded in the restaurant, and is usually paid for "leaving change". Taxi drivers usually do not expect to be tipped, although passengers can collect fees. A small change tip can be given to the hotel porter.

United Kingdom

Tipping is usually not expected.

Sometimes, more often in London and other big cities than in other areas, service fees can be included in the bill, or added separately. 12.5% ​​is reported as a general amount. Because it is a legal requirement to include all taxes and other mandatory fees in the displayed price, a service fee is only mandatory if displayed, or the merchant explains it clearly, before meals. However, if service levels are unacceptable, and in particular do not meet the requirements of the Inventory and Services Act 1982, customers may refuse to pay part or all of the service fee.

North America and the Caribbean

Canada

Tipping is done in Canada in a similar way to the United States. Quebec provides an alternative minimum wage schedule for all ending employees. Several other provinces allow alternative minimum wage schedules for "liquor servers". According to Wendy Leung of The Globe and Mail , it is common practice in restaurants to have their server share tips with other restaurant employees, a process called "out." Other newspapers call this a tip pool. "Out of the house (restaurant) is sometimes described as a cost to cover damage or monetary error [s]."

A Ontario Provincial Member, Michael Prue, has introduced a bill in the Ontario Legislature on tipping. On December 7, 2015 it was reported that "Ontario prohibits employers from taking tips intended for servers and other hospitality staff." "The Protecting Employee Tips Act makes it illegal for employers"... to withhold their employee tips, except for a while if they collect all gratuities to redistribute among all employees. "

Federal tax law Canada regards tip as earnings. Workers who receive tips legally are required to report earnings to the Canadian Revenue Board and pay income tax. In July 2012, The Star reported that CRA was concerned about tax evasion. A server auditing of 145 servers in four restaurants by CRA mentioned in the report found that among the 145 staff audited, CDN $ 1.7 million was not reported. In 2005, CRA cited that it would thoroughly examine tax returns from individuals who are reasonably expected to receive a tip to ensure that the tips are reported realistically.

Caribbean

Tip in the Caribbean varies from island to island. In the Dominican Republic, restaurants add a 10% gratuity and typically tip an extra 10%. In St. Barths, expected to be 10% to 15% if gratification has not been included.

Mexico

Workers in small economy restaurants usually do not expect a significant tip. However, tip in Mexico is common in larger, medium, and higher restaurants. It is customary in these companies to tip no less than 10% but not more than 15% of the bill as a voluntary offer for good service based on total invoice before value added tax, "IVA" in English, VAT. Value added tax is included in the menu or other service industry prices because Mexican Consumer Law requires a final cost exhibition for customers. Accordingly, the standard tip in Mexico is 11.5% of the pre-tax bill equivalent to 10% after tax in most parts of Mexico, except in the lower special tax stimulus economic zone.

A gratuity can be added to the bill without the customer's consent, contrary to law, either explicitly printed on the bill, or in more clandestine ways accusing local customs, in some restaurants, bars and nightclubs. However, by 2012, officials are starting a campaign to combat this rampant and abusive practice not only for violating Mexican consumer law, but also because it is often retained by owners or management.

If a service fee for a tip ("propina" or "restaurant service fee") is added, it is a violation of Article 10 of the Federal Federal Consumer Act and the Mexican authorities recommend customers require management to refund or reduce this from their bills. In addition, in this Federal initiative 2012 to eliminate illegal add-ons, the government clarified that contrary to even the beliefs of many Mexicans, that the definition of Mexican law of tips ("propinas") requires it to spend money to be dissatisfied. the client is not obliged to pay anything to ensure the definition of legal tipping according to traditional definitions and culture, and so far to encourage all victims subject to the increase of illegal practices of reporting the company to PROFECO, the Office of the Federal Prosecutor for Consumer, for prosecution.

United States

Tipping is a social practice practiced in the United States. Tipping by definition is voluntary - at customer discretion. In restaurants offering traditional table services, a gratuity of 15-20% of total customer checks is customary when adequate service is provided. In a buffet-style restaurant where servers only bring drinks, 10% is customary. Higher tips can be given for excellent service, and lower tips for mediocre services. In the case of bad or rude service, no tip is given, and restaurant managers can be notified of the problem. Tips are generally provided for services provided at golf courses, casinos, hotels, spas, salons, and for concierge services, food delivery, and taxis. This etiquette applies to service bars at weddings and other events where one guest also. The host should provide the right tips to the workers at the end of the event; the amount can be negotiated in the contract. Tipping is not required for any service because it is voluntary.

The Fair Labor Standards Act defines passable employees as individuals who typically and regularly receive tips of $ 30 or more per month. Federal law allows employers to include tips to satisfy the difference between hourly wages of employees and minimum wages. The federal minimum wage for employees ending in the United States is $ 2.13 per hour, although some states and territories provide cheaper provisions for end-users. For example, laws in Alaska, California, Minnesota, Montana, Nevada, Oregon, Washington, and Guam specify that employees should be paid at the state's minimum wage/territory (which is equal to or higher than the federal minimum wage in this case) before tips are considered.

A pool tip can not be allocated to an employer, or to an unusual employee and regularly receives a tip. These unqualified employees include dishwashers, chefs, cooks, and janitors.

There is very little information available at the tipping level. A study at Iowa State University provided data for suburban restaurants surveyed in the early 1990s. The average tip is $ 3.00 on an average bill of $ 19.78. Thus, the average tip rate is 16.1%, and the average tip rate is about 15%. In a 2003 research study at Brigham Young University, the sample restaurant had an average tip percentage ranging from 13.57 to 14.69% between 1999 and 2002. A 2001 study conducted at Cornell University explored the relationship between the number of tip and quality of service has shown that the quality of the service is only related to the number of servers provided by the guest. This study shows that servers that provide exceptional services are tipped slightly better, if not better, than servers that provide standard services.

According to the National Restaurant Association, only a handful of restaurants in the United States are adopting a model without tipping and some restaurants have adopted this model back into tipping due to loss of employees to competitors.

Service charges

Service fee is mandatory payment, which is usually added by catering and banquets. The service fee is not to be confused with the optional tip or gratification and at the discretion of the customer. The restaurant usually adds it to the check for large parties. Several bars have decided to include service fees as well, for example in Manhattan, New York. Service fee disclosure is required by law in some places, such as in the State of Florida Percentage predefined standard, often ~ 18%, sometimes labeled as "service fee".

History

Until the early 20th century, Americans regarded tipping as inconsistent with the values ​​of egalitarian and democratic society. In addition, the owner considers the tips to be the same as bribing employees to do something forbidden, such as giving a tip to the waiter to get an extra large portion of food. The introduction of the ban in 1919 had a huge impact on hotels and restaurants, which lost revenue from the sale of alcoholic beverages. The resulting financial pressures caused the owner to welcome tips, as a way to supplement employee wages. Contrary to popular belief, tipping does not appear because the servers' wages are low, because the server occupation (paid) is quite well in an era when tipping becomes institutionalized.

Regardless of tipping tendencies as compulsory behavior, six countries, especially in the South, pass the laws that make illegal tips. Troubled anti-tipping law enforcement. This earliest law was passed in 1909 (Washington), and the latter of these laws were revoked in 1926 (Mississippi). Some people argue that "The original workers who have not paid anything by their employers are newly released slaves" and that "This whole concept does not pay them anything and let them live with tipping away from slavery."

Taxation

Tips are considered earnings. The entire amount of the tip is treated as wages received with the exception of the month in which tip income is under $ 20. Unlike wages where the payroll tax (social security and medicare tax) is shared between employee and employer, the employee pays 100% of the payroll tax on the tip income and tips are excluded from workers' compensation compensation in most states. This does not encourage a policy of no tipping because the employer will pay 7.65% additional payroll tax and up to 9% of worker's compensation for higher wages instead of tipping.

The study found that consistent tax evasion by waiters due to fraudulent declarations is a concern in the US. According to the IRS, between 40% and 50% of tips for waiters are not reported for taxation. Employers are responsible for Federal Unemployment Insurance premiums on tips paid directly from customers to employees, and this encourages entrepreneurs to collaborate on unreported tips.

AS. federal employee

The US government recognizes the tips as allowable expenses for federal staff travel. However, U.S. law prohibits federal employees from receiving tips under the Ethical Standards of Conduct. Requesting, accepting or approving to retrieve something of value that affects the performance of official action is not allowed.

South America

Bolivia

Service fees are included in the bill. The tip of about 5% or more is sometimes given, and is considered polite.

Paraguay

Service fees are included in the bill, and tip is not common.

Oceania

Australia

Tipping is not expected or required in Australia. This is because the federal government protects workers' rights, by giving them a minimum wage. In Australia, this is reviewed annually, and by 2017 set at A $ 17.70 per hour (A $ 22,125 for casual workers) and this is pretty standard in all types of places. Tipping in the cafà © s and restaurants (especially for large parties), and tipping the taxi driver and the food delivery at home is again, unnecessary or expected. But many people tend to collect the amount owed while showing that they are happy to let workers "keep changing".

There is no tradition of tipping someone who only provides a service (eg a hotel porter). Casinos in Australia - and some other places - generally prohibit the provision of gambling staff, as it is considered a bribe. For example, in the state of Tasmania, the Gaming Control Act 1993 states in section 56 (4): "This is the condition of any specific employee licenses that a specific employee should not solicit or accept any gratification, consideration or other benefit of the guard in the game area". There are concerns that tipping may become more common in Australia.

New Zealand

Tipping is not a traditional practice in New Zealand, although it has become uncommon in recent years - especially in better places. Tipping in New Zealand is probably the result of tourist visits from different cultures (such as the United States) who may be following their own tip habits. This is still very rare among locals, especially among workers and the middle class. It is expected that employers pay their staff fairly and the minimum wage is regularly raised with public pressure to ensure minimum wages of employees have a decent standard of living with rising costs of living and inflation. Where tipping occurs among New Zealanders is usually to reward service levels that far exceed customer expectations, or as an unwanted gift for voluntary service action. A number of Web sites published by the New Zealand government advise travelers that "tipping in New Zealand is not mandatory - even in restaurants and bars, but tipping for good services or goodness is at the discretion of visitors." Star-Times readers' polls in 2011 show that 90% of their readers do not want to provide good service to become the norm in New Zealand.

Configuring TouchBistro to Charge HST on Automatic Service Charges ...
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Perspective

% percentage inconsistency

In countries where tipping is the norm, as in the US, Canada, and in some countries in Western Europe, some employers pay workers in the hope that their wages will be coupled with a tip. Some people have criticized the "social clumsiness" inherent in transactions involving tipping, inconsistent tip-giving for some services but are not similar, and irrationality is basing a tip on price, rather than the amount and quality of service (customers paying a larger tip to the server bringing them lobster than hamburger, for example). Also in countries where tips are not paid by most but where a lot, the manager tells the new waiter that the salary may not be so high but there will be tips, which means that the waiter gets a little payment from those who do not pay a tip.

Inconsistencies between cultures differ among travelers

Some nationalities, such as those from the US, are used to paying tips, and often do so even when they visit countries where this is less than the norm. Conversely, tourists from these countries may be negligent to pay a tip when they visit countries like the US where tips are expected.

Discrimination

In the Freakonomics blog titled Should Tipping Be Banned? Stephen Dubner and Steven Levitt discuss gratification issues. The authors point out that a study by Michael Lynn found that "an attractive minister gets better tips than an unattractive waiter." Male appearance, not so important. Lynn's research also found that "blondes get better tips than brunettes." Slim women get a better tip than heavier women, big breasted women get better tips than smaller breasted women. A woman interviewed for the blog stated that she "lost my job because my manager said that I did not match the look of the company, or the restaurant So I do not know if it's because I am more curious than the other girls or because my skin is darker. I do not know ".


Lynn declares a tip: "It's discriminatory, yes, and the Supreme Court has ruled that even a neutral business practice that is not meant to discriminate, if they have a harmful effect on protected classes is illegal, and so it's inconceivable to me that there is a class action lawsuit on the part of ethnic minority servants and servants who claim discrimination in respect of employment, and it is conceivable that tipping can be declared illegal on that basis ".

Case where there is no expected gratuity

Giving a tip may not be expected when charges are explicitly billed for services. In countries like Australia and Japan where no tipping is provided, the service is found as good as in America.

Tipping required

Service fees are sometimes added to bills in restaurants and similar companies. Attempts to hide service fees by blocking the line on the receipt have been reported.

In the United States, criminal charges are dropped in two separate cases for not paying mandatory gratuities. The court ruled that automatic does not mean mandatory. Some shipping lines charge their patrons $ 10/day in mandatory tipping; this does not include extra gratuities for alcoholic beverages.

Bribery and corruption

Bribery and corruption is sometimes disguised as a tip. In some developing countries, police officers, border guards, and other civil servants openly ask for tips, gifts and dubious charges using local euphemisms.

Economic theory

A 2009 academic paper by Steven Holland calls tipping "an effective mechanism for risk sharing and welfare improvement" that reduces the risks faced by service customers, as customers can decide whether to tip or not. Tipping is sometimes given as an example of a principal-agent problem in the economic field. One example is a restaurant owner involving a server to act as an agent on his behalf. In some cases, [c] compensation agreements [can] increase workers' efforts [...] if compensation [...] is related to the success of the company "and one example of such compensation agreement is servants and servants paid tips. However, research shows that in the real world, the tip size only correlates weakly with service quality and other effects dominate.

A.B.P.T.A.: death gratuity nomination form for primary school ...
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See also

  • Giving a required tip

Calculate taxable gratuity by using new excel formulas - YouTube
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References


Gratuity Wikipedia 2827948 - chesslinks.info
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External links

Source of the article : Wikipedia

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