I work at a restaurant that offers us cash tips from the customers but not credit/debit tips. We get comments a lot from customers that want to leave tips but have no cash asking why we don’t have a system in place to accept them. Also, being able to accept credit card tips would mean more money for us employees that work real hard. However, the owners say we wouldn’t want that system in place as we’d have to begin claiming both cash and credit tips. My thought is that claiming them and paying tax on all our tips isn’t that bad because in the end we’d still be netting more at the end of the day? Is there anyone that works with these types of systems or restaurant managers/owners that have experience with this? I’m trying to open dialogue with our management about it. Thanks!
It’s absolutely 100% worth doing. Our card tips are 10x what the cash tips are. And I’ll be that guy and say cash tips need to be claimed as income anyway so that shouldn’t even be a factor.
Either your owners are just trying to save the paperwork of calculating out the card tips and including it in payroll or they’re worried if people start tipping on card they’ll buy less or something, I don’t know. But I guarantee the staff is missing out on a pretty decent chunk of income.