Announcement

Collapse
No announcement yet.

Credit cards and tipping

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

  • Credit cards and tipping

    Just have to ask. On another forum that I frequent the conversation was about tipping at their beauty parlors.
    It seemed like EVERYONE said if they were using a CC that tips had to be CASH ONLY. Is this a thing now? These were salons from all over the country so I take it that it's a "thing" in the beauty industry.

    I, of course, let my clients add tips to the CC. And my groomers get the full amount of the tip. It it made me wonder if our industry is doing that too. Is it even legal to demand that a portion of your bill is paid in a Cash Only?

    On that note, I frequented a Chinese restaurant that wanted payment in Cash Only. I went in one day and noticed that they were taking Checks and CC. I asked about that. She said "the IRS said we had to take all forms of payment". The implied sediment was that it's "to easy to under report your income if you only take cash". Thus, your not paying taxes on all you have income.

    Ok. I'm rambling. Soooo, do you see this in our industry? Do groomers ask that tips are Cash Only?

  • #2
    Well I have worked a couple places and tips didn't have to be in cash, and debit and cc were accepted too. Tips can be put on the card. It's a fact I am sure that places that take cash only do under report, and I know groomers that don't report all cash sales for sure.

    Comment


    • #3
      I have several clients that make sure to tip me in cash, most of whom use a credit card. No matter how much I insist that it's fine if they want to put it on the card they don't.

      There are a few that write checks that do it too, but the majority are card users.

      Comment


      • #4
        It's all about swipe fees. I allow tips on cards and absorb the fees. It's very unfair that I pay over 400 month in fees that come right off the service dollars just to process the transaction and deposit it in my bank.

        I assume tipping in cash helps cut the fees for owners. I recall over 16000 bucks in cc tips last year for 6 employees. Don't want to know what I paid on their tips and they get the whole tip.

        Sent from my SAMSUNG-SM-G935A using Tapatalk

        Comment


        • #5
          I think I can understand Tom, but you just gotta think of it as a cost of business regardless. Adds up, but better if they stay with you as employees, keep them happy and convenient for customers. Owners that do a good job probably don't get their due.

          Comment


          • #6
            We don't allow tips on cards. It mainly has something to with the tax issues for the business. Not sure if all the details ( not that interested to go through legal speak ) but in my mind I simplify it to understand that the business takes in a certain amount of cash/ card income and therefore is taxed on that amount.
            Maybe we just need a better tax system?

            Comment


            • #7
              It's very simple. We are supposed to include cc tips with payroll. Groomers should claim their cash tips but it's my responsibility to add it to their taxed legal payroll that I run weekly.

              Sent from my SAMSUNG-SM-G935A using Tapatalk

              Comment


              • #8
                We allow tips on cards, my groomers would make less. Since I report them as part of wages/tips, which is a business expense, and there is no accounting issue says my cpa.

                Comment


                • #9
                  We allow on cards, it can make a difference for the staff. We just tally it each payroll and it is an operating expense, so no issues, but a bit more paperwork. What is being a business owner if not master of paperwork.

                  Comment


                  • #10
                    Originally posted by IrishSetterTom View Post
                    It's all about swipe fees. I allow tips on cards and absorb the fees. It's very unfair that I pay over 400 month in fees that come right off the service dollars just to process the transaction and deposit it in my bank.

                    I assume tipping in cash helps cut the fees for owners. I recall over 16000 bucks in cc tips last year for 6 employees. Don't want to know what I paid on their tips and they get the whole tip.

                    Sent from my SAMSUNG-SM-G935A using Tapatalk

                    My boss deducts the fees and taxes and pays us bi-weekly what CC tips we recieved. I get it, just kind of stinks.
                    It's not what you look at that matters; it's what you see.
                    Henry David Thoreau

                    Comment

                    Working...
                    X