Originally Posted by
msk2193
The trend from "tip" to "service charge" is one you will see spread further in the USA.
For one, a tip belongs to the waiter. The employer cannot legaly alter the amount he or she pays to the employee - usually same or next day.
With a service charge this is not the case, and the restaurateur can decide to allocate a portion to the rest fo the crew, hold on to it for a week or a month, etc. I do believe, however, this now becomes part of income and now social security, etc. is paid on the full payout of wages including this "tip".
With tax laws in effect since the mid '80s it makes sense for a restaurant to do this as the burden of withholding on tips is with the employer.
If the service is exceptional, I always have a few extra dollars in cash to discretely hand to the waiter / waitress. I doubt the employer will tyr to pry it out of his / her hands!.
Apparently you don't realize that "Splitting Tips" is quite common in a variety of establishments selling food and beverages. Bar(wo)men often receive a portion of the tips given cocktail wait(resses/persons). Depending on the joint, the splits may extend even unto busboys/girls. The "Split" is usually carried out among employees, leaving out management to avoid clumsy tax issues. Back when I wasa barman, those few bucks you handed the cocktail waitress were sure going to be split with me.
On the other hand, even as a former barman, when I see an entry for "Service Charge", my desire to further reward wait staff disappears, especially when the "Service Charge" is shown at 17.5 - 20% (or even more these days). I'll take this sort of "Taxation without Representation" once, but take care never to retun again. On the other hand, having been exposed to, seen and known a multitude of chickensh*t patrons whose idea ofa good tip is a dollar or two on a fifty dollar check, I understand why some restaurants resort to this sort of blackmail.
Of course, nothing matches hotel room service charge ripoffs....