bobbyjohn Loc: Dallas, TX

In the USA, tipping to service people, like waiters & waitresses, is customary. Your country may vary. My wife and I typically go to a restaurant once or twice a week (even in the age of CORONA). We typically tip 15% or maybe a bit more if the food/service is excellent.

What we've found is a sort of SCAM at many of the restaurants we patronize. The SUBTOTAL is the price of food and drink, and that's what the tip should be based upon. The government tacks on its pound of flesh in the form of 8 1/2% tax in our county. But what the restaurants are doing is adding the SUBTOTAL and the Tax, then using their math to calculate the tip on that. I don't begrudge the government for adding tax, but to pay a tip on that tax is just unconscionable.

In the example, the left side restaurant does their math "for your convenience." My, how convenient is that! For the restaurant on the right side you pay before you sit down, with a screen where you push a button for 15% or 18% or 20% or No Tip. When you push the button for 15% as I did, guess what...they base that tip calculation on Subtotal plus Tax, all unbeknownst to the patron. Not too cool!

So, going forward I will pay now with cash and with the appropriate tip added.

(Download)

johngault007 Loc: Florida Panhandle

How is that a scam? It's a line of computer code in the register/computer that just calculates off of #variable_X. The restaurant itself probably has no control over it, or at a minimum, just had it set to the total.

But, tipping at 15% I can see how you would be upset about the very little difference that 15% of +/- $2.00 would make.

Ollieboy

PixelStan77 Loc: Vermont/Chicago

Very common here in the midwest. Why not no tip and leave the tip in cash? Howw as the pulled pork and brisket sandwich?

Ollieboy

What's the net difference? That would be 15% of the tax (8-10%). Not really worth getting upset about. On a $100 check that comes to a whopping max of $1.50 added. On your bill it's less than 40 cents.

JohnSwanda Loc: San Francisco

Most people who work for tips work very hard and don't make that much money, and I don't begrudge them a good tip. These days a 20% tip is considered standard, so you're a little light there to begin with. The difference between the tip with or without tax isn't enough to worry about. Personally, if I felt tipping appropriately was beyond my budget, I would eat out less often.

johngault007 Loc: Florida Panhandle

Shellback Loc: North of Cheyenne Bottoms Wetlands - Kansas

I ran into that in Phoenix about 10 years back and it got my curiosity up so I called the state tax authorities - they told me that it was legal as long as the restaurant was reporting the tips collected included the taxes. He wouldn't go into details other than if the restaurant didn't report correctly, they could be fined and/or have tax evasion charges filed - I started watching for it elsewhere and found it in all restaurants in the states I travel through (mid west to west). I chalk it up as business as usual and if the extra tips get to the workers - it's a good for them, and I'm OK with that.

TBPJr Loc: South Carolina

Most restaurants I patronize figure the tip pre-tax. I try to be fairly generous, because the staff generally work very hard, and because I got in the habit to compensate for the madhouse my eight grandchildren usually create, not to mention the adults. Of course, those are just fond memories for the time being. I now tip more generously for take-out than I used to do, trying to support the restaurants and staff I like.

I think there are some simple ways to calculate the tip yourself if you don't like the restaurant's computer numbers. Multiply by two (and adjust the decimal) for a quick twenty percent. Divide by six to get between sixteen and seventeen per cent. Move the decimal one place left, and add half for a precise fifteen percent. Divide by four for twenty-five percent. And you can always round to suit yourself.

Longshadow Loc: Audubon, PA, United States

Where I live, on a $37.74 bill, the sales tax would be $2.26.
Twenty percent of $2.26 would be 45¢, I think I can afford that.

On a $100 bill the tax would be $6. If the service was super, they deserve the $1.20 ($6*.2), but they may get another $5.

I just double the total & move the decimal point for average service.
Increase/decrease for great/lousy service. Rarely do I have to decrease.

IF the server is working double duty (short-shifted/harried) they usually get more.

bobbyjohn Loc: Dallas, TX

It's not the small amount of extra tip on tax but rather the principal of the thing that concerns me. You pay for food and tip for service. And a government tax involves no service. At one other mom & pop restaurant who did the funky calculation, I spoke with the owner about it. He said that he didn't know that was the way the meal checks and tips were calculated, and assured me that it would be corrected in the software for our next time at his restaurant.

johngault007 Loc: Florida Panhandle

I'm tipping the service, and I'm like LS and some others. I start at 20-22% and usually go up (rarely if ever down). So if I'm adding in the sales tax as the tippable percentage, that just means the wait staff gets more, and most likely deserves it.

Rongnongno Loc: FL

I am going to upset the op for good reasons.

You complain about what exactly? A dime or two? You have way more $$$ than these kids if you can afford to go out twice a week.

One more thing, you are not paying attention.
Choices are different depending of the amount
<10 and you get a choice in $ not percentage
>= 10 you get a choice in Percentage.
In both cases you also get:
- CUSTOM TIP
- No tip.

Something you are not aware of and this is where you should get upset....

If you leave a tip on a credit card, the card company pockets some of it. THAT IS AN ISSUE, not your ridiculous 'restaurant is stiffing us'.

So, YES leave the tip in cash.

A few more things you need to be aware of:
- The tips are shared and do not go onto your favorite waiter's pocket.
- Tips in cash are shared by shift.
- Tips in credit cards are shared monthly* with all the employees, not by shift.
- In some states the law is such that kids who are paid the minimal wage do not get the tips, the owner does (Florida by example).

I led a campaign against a local restaurant using this law. I do not know if I had an impact but no one I talked to about it went back there. That place shutdown a few months later - probably mismanagement because I am sure whatever I did was private so had very little effect - if any.

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* Depends on the restaurant.

Longshadow Loc: Audubon, PA, United States

Not all my principles are cast in granite.
I'm guessing the person who wrote the program was not aware that the tax is typically accepted as calculated pre-tax.

Interestingly, tonight we had dinner out (nice restaurant-not coat & tie though), first time since March.
The bill was $83.00 plus $3.66 tax; $86.66.
Relatively new server, attentive, cordial, friendly, inter-active, and efficient. We left $20.00

Architect1776 Loc: In my mind

We just use cash or write the tip on the tip line of the count.
Never use the "Suggested" amount as it is to reflect the quality of the service not some arbitrary demand.
PS for good service we generally tip better than that 15% but at times nothing. When nothing the service is bad and food is inedible and we just leave the uneaten food (garbage) and let the restaurant know it is crap and leave.