Did you tip on the pre-tax amount or the post-tax amount of your bill?
I ran across an article a while ago, I think on Yahoo or MSN, anyways it said that people should tip based on the pre-tax amount. I never thought to do that. What do you think?
Pre tax, which takes a little mental math. If the service is really good I just do 20 percent of the total. A tip acknowledges food and service, not local taxing power.
Pre-tax amount. The tax isn't part of the restaurant's revenue, that goes to the state.
I tip on the pre-tax amount. The server nor the restaurant provided a service for the tax. The state or city just takes it. So I guess, I "tip" the server and the state (sales tax) on the pre-tax amount.
If you tip based on the post-tax amount, youare doing your server a favor if you are using the 15% or 20% formula. The bigger the total, the bigger the tip. The amount of your tip has no bearing on the amount of income tax a tipped employee pays. Tipped employees tax is based on 8% of their total sales. Not on what you leave on the table. Tipped employees actually make out on this government formula, but the government figured getting guaranteed tax on 8% was better than being dependent on the honest reporting of tips by the employee. That didn't happen much.
Tip of the day: If you look for a second job, this is the way to go.
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