Christmas Tipping

It is that time of the year, where the holidays are here and the question becomes how much should I tip? Who should I tip? While it may make you feel good to tip, you may be causing the person you tip hardship. Matter in fact I know you are.

I know I am going to be called a Scrooge but tipping should not be necessary. In some cases it may result in the tippee having to pay taxes on your generosity.

With today being Thanksgiving the web is starting to have articles on who you should tip and how much. Kiplinger’s Holiday Tipping Tip Sheet is one place if you are interested in tipping.

But hold on to your cash. While everyone loves CASH, it may be prohibited. So if you really feel the need to tip consider this.

Any gift whether cash or not should be considered taxable income for IRS purposes if it is over $25.00 in cash value. If the person is your works for you as an employee, you may even have to pay employer taxes such as FICA and Medicare on the “tip”.

Further more by tipping is a way of allowing some employers from paying legally sanctioned sub minimum wages. For example your waiter or waitress depending on where you live can be paid a wage that is 1/3 the federal minimum wage. Why because they gets tips. The government says a tip is part of their wage so the owner does not have to pay a living wage. By going along with this you are supporting substandard wages. Also in most restaurants, the waitress and waiters are expected to share their tips with the entire staff. The cook and bussers that are making minimum wage or better are getting their cut.

Now before you waiters and waitresses and other restaurant staff lynch me, I want to say that I appreciate what you do. I know how hard you work and the crap you have to put up with. From the family that has a 2 year old making a mess all over and leaving a dollar tip to the teenagers pouring ketchup all over the table because it is your job to clean up after them. To the drunks or downright rude people who think you are beneath them.

What I am saying Mr. Waiter, Ms. Waitress and other restaurant people is that I am sticking up for you. You should not have to try to just get by. You deserve to Get Ahead In Life! You should be paid a living wage, have sick leave and healthcare.

Now back to the order of tipping. Please if you feel the need to tip the paperboy, grocery bagger, hair stylist, etc. Please buy them a GIFT under $25.00. By continuing the practice of giving cash tips you are helping to justify the lower wages the companies love to pay.

And while you are at it give your waiter or waitress a gift for the restaurant owner. A holiday card with a note saying they should pay their staff a living wage and eliminate tipping.

Here is a tip from me. If you really want great service, tip before the service, not after. The wait staff usually will bend over backwards to make sure you are taken care of. And let their manager know that you had great service! The only time a manager hears anything is when there is a problem. Let them know what a great employee that they have!

Just my 2 cents. Jim @ ChangeJarSavings.com