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Reporting Tip Income to the CRA


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#21 Marc

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Posted 22 July 2012 - 12:51 AM

my servers leave there shift every day with their full amount of tips. Always have and always will. I dont see or touch their money. With a large enough float there is never a problem with this. I have my Bartenders seperate their tips with every transaction. So if a visa slip says a $5 tip, then they pull $5 cash out of there till and put it in their drawer.
it's been that way for the almost 14 years i have been at the pub!


Our support staff get paid the next day as they are gone before the end of the night. The servers often have to wait much longer. As I mentioned in my previous post, we see very little cash.

#22 kenjh

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Posted 22 July 2012 - 03:16 AM

I will leave any place that tell me tip's are included in the final bill ,,I have no proof of great service ...or even good service ..am i expected to tip for average service ??

#23 Holden West

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Posted 22 July 2012 - 07:27 AM

I will leave any place that tell me tip's are included in the final bill ,,I have no proof of great service ...or even good service ..am i expected to tip for average service ??


I have only seen that policy enforced on large tables. Any server, including former ones like me, can tell you about that large party they took on all night (while their co-workers were turning over multiple tables). A few deadbeats at the table forget or withhold their share of the bill, or assume their fellow guests are covering the tip. I've seen servers completely stiffed on big tables they spent hours slaving over through no fault of their own.

But I worked so long ago I'm sure it was around 50/50 credit cards and cash--no debit.

To bring this thread on track as there is a separate tipping thread, I would declare the majority of my tips--not too much or too little that would draw attention.
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#24 Mike K.

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Posted 22 July 2012 - 07:31 AM

What if three people that night want to pay with $100 bills, for their $15 dinners? Do they run out of cash?

Come on, every business has a few hundred of cash in the safe or float lock-up, and even the most debit/credit-using-client restaurant takes in several hundred dollars in cash each day.

They have the money, maybe they don't have management they can trust to access it. I mean, even if this theoretical restaurant deals nearly 100% in plastic, they can still implement a system where they have enough cash for tip payouts. They have a bank.


You do realize that 15% on $3,000 is $450? $5,000 and we're looking at $750. Why would any business owner go through the hassle of keeping hundreds of dollars around for no other reason than to tip out workers in cash at the end of the day if they have a system that equitably shares the tips among the staff at regular intervals and doesn't require a nightly divvy up to the last penny?

My girlfriend gets her tips every couple of weeks. She hasn't made a whimper of fuss about it.

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#25 Holden West

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Posted 22 July 2012 - 07:44 AM

^It actually might be a good thing. In Ancient Times, when those less disciplined walked out the door with 100% of that night's tips in cash, some or all of it ended up disappearing in a post-midnight flurry of boozing, cocaine and all-night poker marathons. Every two weeks like your girlfriend is just like another paycheque.
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#26 Marc

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Posted 22 July 2012 - 08:06 AM

In Quebec the restaurant must report it's daily sales and keep a log of the staff that worked so that the tips collected can be estimated by the government.

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#27 sillyia

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Posted 09 August 2012 - 12:14 PM

You must also consider that the restaurant that started this discussion is not simply tipping out the service staff and the kitchen. They are also tipping out their management who are making a very decent salary. I feel this is very unfair. Why pay a manager 44K Plus then take from your minimum or less than minimum wage employees ?
I have been to the restaurant and heard the complaints on more than one occasion which should not happen within hearing distance of the customers.

#28 Bob Fugger

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Posted 09 August 2012 - 12:34 PM

You must also consider that the restaurant that started this discussion is not simply tipping out the service staff and the kitchen. They are also tipping out their management who are making a very decent salary. I feel this is very unfair. Why pay a manager 44K Plus then take from your minimum or less than minimum wage employees ?
I have been to the restaurant and heard the complaints on more than one occasion which should not happen within hearing distance of the customers.


$44k for a restaurant manager is peanuts, given the hours that s/he puts in and the network of contacts/customers that should be brought in. A share of the tips is a way for ownership to bonus their managers without hurting (a slowly eroding) net profits. As tips are commensurate with sales, it provides incentive to the manager to build sales, which in turn drives up total tips for all.

All that said, while we do require servers to tip out the house (I.e., kitchen, bussers, expediter, hostess and bar), we do not require them to tip out the manager (who is often doing many of the listed tasks, except cooking).

#29 G-Man

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Posted 09 August 2012 - 12:51 PM

You must also consider that the restaurant that started this discussion is not simply tipping out the service staff and the kitchen. They are also tipping out their management who are making a very decent salary. I feel this is very unfair. Why pay a manager 44K Plus then take from your minimum or less than minimum wage employees ?
I have been to the restaurant and heard the complaints on more than one occasion which should not happen within hearing distance of the customers.


Hearsay.

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#30 VicHockeyFan

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Posted 09 August 2012 - 12:52 PM

$44k for a restaurant manager is peanuts, given the hours that s/he puts in and the network of contacts/customers that should be brought in. A share of the tips is a way for ownership to bonus their managers without hurting (a slowly eroding) net profits. As tips are commensurate with sales, it provides incentive to the manager to build sales, which in turn drives up total tips for all.

All that said, while we do require servers to tip out the house (I.e., kitchen, bussers, expediter, hostess and bar), we do not require them to tip out the manager (who is often doing many of the listed tasks, except cooking).


Well, give him/her a better incentive than a portion of tips, let them in on profit-sharing (best), or a percentage of sales (not as good, since costs are not considered).
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#31 Bob Fugger

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Posted 09 August 2012 - 02:25 PM

Well, give him/her a better incentive than a portion of tips, let them in on profit-sharing (best), or a percentage of sales (not as good, since costs are not considered).


I'm not saying that it's the best bonusing scheme - but it does explain why some places tip out management.

#32 sillyia

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Posted 09 August 2012 - 02:43 PM

Hearsay.


Not "Hearsay". I have stated my daughter owns a restaurant and I do watch craigslist here for positions for my grandaughter. I saw the ad for a manager for the front of the house. I also heard complaints. I believe it is unfair for tips to go beyond the service staff and the lower wage kitchen workers. That is what bonuses and profit sharing are for in my opinion.

There are not many places where I can walk to have a cocktail and enjoy Mt. Baker when it is out since the restaurant is just a few doors up from me.

#33 Holden West

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Posted 09 August 2012 - 02:47 PM

Managers demanding servers tip other managers is pure sleazeball. There's a division between management and staff. Like VHF says, if anything managers should receive profit sharing from the owners.
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-City of Victoria website, 2009

#34 G-Man

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Posted 09 August 2012 - 03:01 PM

Not "Hearsay". I have stated my daughter owns a restaurant and I do watch craigslist here for positions for my grandaughter. I saw the ad for a manager for the front of the house. I also heard complaints. I believe it is unfair for tips to go beyond the service staff and the lower wage kitchen workers. That is what bonuses and profit sharing are for in my opinion.

There are not many places where I can walk to have a cocktail and enjoy Mt. Baker when it is out since the restaurant is just a few doors up from me.


Unless the ad you saw indicated that part of the compensation package included tips form other staff or you have actual evidence that this is going on apart from overhearing comments while there, than your comment was the definition of hearsay.

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#35 sillyia

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Posted 09 August 2012 - 03:13 PM

Unless the ad you saw indicated that part of the compensation package included tips form other staff or you have actual evidence that this is going on apart from overhearing comments while there, than your comment was the definition of hearsay.


What I can and will say is that the ad was in craigslist. I went and found it. Whatever complaints the staff speaks of is what I overheard. Perhaps, that is hearsay in your opinion. Here is the ad. I do not believe anyone placing such an ad would call it other than a bonus if it was not. I have seen such ads prior that managers receive tips here. I was appalled.

Note that I did qoute the salary incorrectly at 44K as it was 40K.

Front of House Manager (The Beach House, Saanich BC)

Date: 2012-07-03, 2:53PM PDT
Reply to: c9tmz-3117098807@job.craigslist.org [Errors when replying to ads?]



Front of House Manager and Experienced Bar Manager required for busy restaurant. Must be able to handle 30+ staff, 200+ seats. New restaurant so lots of room for creativity and leadership. Team skills are essential! Please send us your resume and advise of your availability.
  • Location: The Beach House, Saanich BC
  • Compensation: $40,000 per year plus tips
  • Principals only. Recruiters, please don't contact this job poster.
  • Please, no phone calls about this job!
  • Please do not contact job poster about other services, products or commercial interests.
http://victoria.en.c...3117098807.html

#36 G-Man

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Posted 09 August 2012 - 05:55 PM

That could be an issue. It would depend on how the tips are earned. I don't disagree with what you beliee is wrong.

That said I could read it as how I used to work. I used to manage a restaurant and when it was busy I took tables and I certainly kept the tips I earned (after tipping out). That said I was not making a salary close to 40k.

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#37 Sparky

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Posted 09 August 2012 - 06:26 PM

There were times when the waiter/waitress put 100% of the tip in his/her pocket and didn't share it with the CRA or the chef, buss persons, dishwashers, etc.

What is the most ideal (respectful) way of dividing up a $1 tip today?

I've been out of this game too long to know.

#38 sebberry

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Posted 09 August 2012 - 06:28 PM

I don't see a problem with a manager collecting tips on the tables he/she served, but collecting a portion of the tips earned by the servers? Crossing the line, IMO.

#39 G-Man

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Posted 09 August 2012 - 06:51 PM

It used to be 5% of sales would be tipped out. 1% to host/busser 1.5% to bar, 2.5 to kitchen. Of course every restaurant is going to be different. I would always pad the kitchen tip out (or buy them beers) because that way you got your food a little faster prettier and your redos right away. This of course led to higher tips.

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#40 Sparky

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Posted 09 August 2012 - 07:39 PM

Thanks G-Man.

So would tips add up to 5% of sales? I was hoping it would be a little bit more. I leave 10% for average service, but if something really special was going on it would be more.

On the rare occasion if something nasty happened....0

EDIT So I get it, the rest goes to the wait person.

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