<font face="Verdana, Arial, Helvetica, sans-serif" size="2">Originally posted by sonofliberty:
Percentages do matter, because many restaurant owners take a flat percentage of the server's tips. At my favorite restaurant, the owner deducts 7.5% of each server's gross sales from their hourly wages.
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Unfortunatly true. BUt not always. It depends on the setting and the business. Where I work, in the dining room and bar no percentage is deducted besides the 30% or so we tip out our helpers. In banquets (meetings, weddings, etc.) the hotel charges 20% and WE get 11-13%. 1% goes to our housemen (who are paid much more than us per hour.... most houseman in most places get no percentage so this is a sign of employees well-taken care of, I think). The captains get an extra percentage (1 or 2%?... it's not public info) and the house gets the balance. But we don't tip out anyone.
Unfortunately for my co-workers, the banquet tip(gratuity it is called when it is included, like this) is included on paycheck. Hahaha. So they have to pay taxes on it. They are supposed to pay taxes. Duh. But with cash tips many wouldn't declare them.