Comments on: Garnishing of Tips to Pay Charge Card Fees Sparks Controversy http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766 Service Industry and Consumer Resource Wed, 08 Sep 2010 21:08:25 +0000 hourly 1 http://wordpress.org/?v=3.0.1 By: Brian Harvel http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766/comment-page-1#comment-484 Brian Harvel Sat, 24 Jul 2010 19:17:46 +0000 http://www.tip20.com/?p=766#comment-484 While this may not seem fair when considering this from the employee's perspective, lets look at this from the employer's perspective. The employer is providing a fair wage. They pay a 1.5 to 3.5 percent fee on all sales paid by credit card. The tip is added earnings to the employee and do not reflect on the employer at all. Why should the employer be expected to pay extra cash whena patron chose to leave a tip on a credit card. The employer does not determine the amount of the tip or if one is left. The employer pays a fee on the money he is earning why shouldnt the employee pay the fee for money they earn left on credit? While this may not seem fair when considering this from the employee’s perspective, lets look at this from the employer’s perspective. The employer is providing a fair wage. They pay a 1.5 to 3.5 percent fee on all sales paid by credit card. The tip is added earnings to the employee and do not reflect on the employer at all. Why should the employer be expected to pay extra cash whena patron chose to leave a tip on a credit card. The employer does not determine the amount of the tip or if one is left. The employer pays a fee on the money he is earning why shouldnt the employee pay the fee for money they earn left on credit?

]]> By: Caleb http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766/comment-page-1#comment-430 Caleb Wed, 19 May 2010 18:19:34 +0000 http://www.tip20.com/?p=766#comment-430 I've actually known about this problem for a while, and as a tipped employee in a different industry (car detailing), I know how it feels. I always try to make sure I tip in cash, whenever possible, and if I have no choice but to use the card, I try to tip more than I normally would to make up the difference. I’ve actually known about this problem for a while, and as a tipped employee in a different industry (car detailing), I know how it feels. I always try to make sure I tip in cash, whenever possible, and if I have no choice but to use the card, I try to tip more than I normally would to make up the difference.

]]> By: ej http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766/comment-page-1#comment-411 ej Tue, 06 Apr 2010 18:27:33 +0000 http://www.tip20.com/?p=766#comment-411 You can certainly deduct them as Job expenses because they are linked to the generation of income. The issue is if it's worth your time. Here's why: Job expenses are allowed to the extend they exceed 2% of your adjusted gross income, and have to be itemized, meaning that these expenses plus other deductions such as mortgage interest, real estate taxes, donations, must be higher than your standard deduction. Example: Your employer charges you 3% on tips paid with credit card. Let's say that't $20k. Then the job expenses would be $600. Assuming your total income was $25k, 2% of it is $500. The excess of job expenses is now only $100. If you are single and do not own a property, your standard deduction is $5700. $5700 vs $100. Which deduction would you choose? You can certainly deduct them as Job expenses because they are linked to the generation of income. The issue is if it’s worth your time. Here’s why: Job expenses are allowed to the extend they exceed 2% of your adjusted gross income, and have to be itemized, meaning that these expenses plus other deductions such as mortgage interest, real estate taxes, donations, must be higher than your standard deduction.
Example:
Your employer charges you 3% on tips paid with credit card. Let’s say that’t $20k. Then the job expenses would be $600.
Assuming your total income was $25k, 2% of it is $500. The excess of job expenses is now only $100.
If you are single and do not own a property, your standard deduction is $5700.
$5700 vs $100. Which deduction would you choose?

]]> By: admin http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766/comment-page-1#comment-389 admin Tue, 09 Mar 2010 18:13:07 +0000 http://www.tip20.com/?p=766#comment-389 Hi Bart - Good question. I must first state that we do not offer "Legal Advice" and I would direct you to: <a href="http://search.irs.gov/web/query.html?col=irsweb&charset=utf-8&ht=0&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&pw=100%25&ws=0&la=en&qm=0&st=1&nh=10&lk=1&rf=0&oq=&rq=0&si=0&qt=tip+reporting&Go.x=12&Go.y=8" rel="nofollow">The Official IRS tipping tax laws.</a> I think it would be difficult to deduct them as expenses because they are not really expenses but rather things that just limit your income. Additionally, I doubt that there is a law against how your employer chooses to deduct "his" expenses. Albeit, not very fair to you. I hope someone else with more tax knowledge can weigh in here for you as well. Hi Bart – Good question. I must first state that we do not offer “Legal Advice” and I would direct you to: The Official IRS tipping tax laws.

I think it would be difficult to deduct them as expenses because they are not really expenses but rather things that just limit your income. Additionally, I doubt that there is a law against how your employer chooses to deduct “his” expenses. Albeit, not very fair to you. I hope someone else with more tax knowledge can weigh in here for you as well.

]]> By: Bart Gray http://www.tip20.com/garnishing-of-tips-to-pay-charge-card-fees-sparks-controversy/766/comment-page-1#comment-388 Bart Gray Tue, 09 Mar 2010 17:43:21 +0000 http://www.tip20.com/?p=766#comment-388 I am a server, and i have my credit card fees deducted, not only from tip but from check. Would i be able to write off those deductions on my taxes? And is it legal to charge from the check and the tip? I am a server, and i have my credit card fees deducted, not only from tip but from check. Would i be able to write off those deductions on my taxes? And is it legal to charge from the check and the tip?

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