Random question on tipping/percentages

[Angry:(]

Was talking to another MT awhile back, the owner of the business started taking 3% of any cc tips due to the charge she incurs from the cc company (a cost-cutting measure). The MT said she was under the impression that owners could not do that under labor laws, all tips belong to the employee in full. I don't know, and I couldn't find anything online regarding it. But she isn't an employee, rather an IC. So does that change things?

Also kind of bites because she can't claim the cc machine leasing fees as a business expense because it's not leased in her name, but in the business she works at. Or can she? I think it's rather unfair because of the tax thing but also because clients intend for that money to go in full to the person who worked on them. At least, that's what my intention is when I tip someone! It's for *them*.

Is this common? It's pretty much just idle curiosity on my part, but it has made me start tipping everywhere in cash!

 

[Holiday Blue]

Random question on tipping/percentages

I think it is common, though obnoxious.

She should get (or give) a detailed accounting of what she earns and what her expenses are, and require a receipt for payments made to the owner. Then it should be tax deductible.

I tip in cash.

 

[knight]

Random question on tipping/percentages

Was talking to another MT awhile back, the owner of the business started taking 3% of any cc tips due to the charge she incurs from the cc company (a cost-cutting measure). The MT said she was under the impression that owners could not do that under labor laws, all tips belong to the employee in full.

Tips offered by the client directly to the service provider belong to the employee 100%. Service charges in lieu of a tipping policy belong to the employer 100%.

But she isn't an employee, rather an IC. So does that change things?

yes. It should be spelled out in any agreement, but it does change things.

Also kind of bites because she can't claim the cc machine leasing fees as a business expense because it's not leased in her name, but in the business she works at. Or can she?

She can. But first she has to declare the full amount of the tip as income in order to claim the deduction. $10 Tip, $.30 service charge.

I think it's rather unfair because of the tax thing

In order for this to be truly unfair, then the MT would have to be declaring 100% of their cash tips to the state and feds before they start complaining about the unjustness of 3% of a portion of their tips.

but also because clients intend for that money to go in full to the person who worked on them. At least, that's what my intention is when I tip someone! It's for *them*.

Taht depends. In a spa setting, most guests are tipping on the totality of the service experience. The comfy robe, the refreshment bar, the waiting lounge, etc. That goes well beyond the work of the service provider. Pluck someone from Massage Envy andput them at a resort spa and their tips go up exponentially, not directly related to "them". Restuarants are diferent -- you are rewarding prompt, courteous serving,not the quality of the food.

Also consider the alternative -- a cash only tipping policy which may limit tips based on someone remembering to go the ATM. If a business needs to cut costs in order to keep operating, you can't ignore it and be all about you.

 

[hotchic_foxy101]

Random question on tipping/percentages

I don't think she's trying for it to be 'all about her', she isn't ignoring anything and she DOES declare her tips. It was just a question, She's not mad about it - it doesn't add up to *that* much and she's aware of that. She's happy where she is and isn't about to change the status quo because of a few dollars each week. There will never be a cash only tip policy and she doesn't want there to be one.

I would expect tips to be higher at a resort than at Massage Envy, because prices are higher people are tipping 20% of the total. I get a larger tip for doing one of our packages than I do when I do a single massage, even though they experience the same atmosphere and personal attention. And I can only speak for myself but when I get a massage - or get my nails done or my hair cut - I tip the service provider for the work THEY did, in appreciation of a great massage or facial, the time they spent, the little extra they might have done deserves even more. I do NOT tip him or her because of nice robes or plushy chairs or imported tea. Quite frankly, I don't factor those things in when tipping. If that's the case, tips would be nonexistent during outcalls.

 

[Jeremy L]

Random question on tipping/percentages

tranquilspirit - I'm sure that this varies from company to company, but the two merchant service companies that I have used do not take a perceneforum.xxxe of the tip (when it is run through as a tip). This may be the case for your friend. The last place that I worked before opening my own place also had a company that didn't charge a perceneforum.xxxe on the tips. The owner wasn't aware. I said something gently along the lines of, "Wow! Your credit card processor charges you a perceneforum.xxxe on your tips? The last place that I was at didn't!." And sure enough, when she checked, no charges!!! In the case of the companies that I've used, the tip must be put in as a tip though(after the transaction is run) and not included in the total amount of the sale. For example, if the massage is $65 and they tip $10, you have to put it through as $65 and then push the tip button and add $10. Not run is through as $75. I hope I'm making sense.. lol I can't seem to wake up today. t015

 

[Hannah Iced Over]

Random question on tipping/percentages

Dawn, I gotcha! I know what you mean, we can adjust for a tip afterward too. The company the owner uses doesn't take 3% when tips are adjusted either, the owner just decided to recoup the 3% that the transaction costs whether the tip is added originally or adjusted afterwards. When the MTs are tipped with a cc (added before or adjusted after running), they pay the 3% fee either way. (Since SpaFinder takes 17% they pay that too, when clients use a SF gc and tip with it.)

Either way, she says it's a small thing in an otherwise happy workplace so it's not a big deal. We were just wondering about it, this is her first job and I've been at the shop I'm at since I got out of school 4 years ago, so neither of us have much experience with the usual policies of cc tips in various MT practices. Just idle curiosity on both our parts!

 

[Jazmyne]

Random question on tipping/percentages

I would expect tips to be higher at a resort than at Massage Envy, because prices are higher people are tipping 20% of the total.

That is why my point is the tips increase exponentially, not proportionally. Massage Envy tips do not average 20%. Day Spa and resort tips do.

And I can only speak for myself but when I get a massage - or get my nails done or my hair cut - I tip the service provider for the work THEY did, in appreciation of a great massage or facial, the time they spent, the little extra they might have done deserves even more. I do NOT tip him or her because of nice robes or plushy chairs or imported tea.

And I was not speaking of you. I was saying with most spa customers to illustrate that spa tips tend to encompass the whole experience.

If that's the case, tips would be nonexistent during outcalls.

Again, the point was about spa clientele. But in the realm of outcalls, our technicians do try to replicate the spa experience as best as possible. Setting the appropriate lighting, bringing relaxing music and a selection of organic aromatherapy products, leaving the bathrobe draped across their legs at the end of the session (Kimpton hotels have great animal print robes in every room), and providing a serving them a glass of cool water, and sometimes even drawing a bath is a part of our guests experience and leads to consistently excellent tips.

 

[Voistikiphete]

Random question on tipping/percentages

quote]
Again, the point was about spa clientele. But in the realm of outcalls, our technicians do try to replicate the spa experience as best as possible. Setting the appropriate lighting, bringing relaxing music and a selection of organic aromatherapy products, leaving the bathrobe draped across their legs at the end of the session (Kimpton hotels have great animal print robes in every room), and providing a serving them a glass of cool water, and sometimes even drawing a bath is a part of our guests experience and leads to consistently excellent tips.[/quote]

And again, that is nothing to do with what a spa owner has provided in the way of atmosphere, robes, or refreshments other than training their staff and providing the items. Those are things the MT is doing and the tip is to show the client's appreciation for those things. I'm sure the client doesn't intend for part of the tip to go to the business in thanks for the music and aromatherapy products. It all adds up to their enjoyment but people tip service people intending the money to go to *that* person. When I go to get my hair done, I tip the stylist because I like her work, even though the salon owner has done a great job with her place and makes it very nice to go to. But I am not tipping her or intend for part of the tip to go to her for providing that nice place. The atmosphere and nice touches may contribute to higher tips but ultimately, I think most people think the entire tip is going to the person who worked on them.

I'm sure, as a business owner, you would prefer to get the whole amount of money that is intended for you, not a perceneforum.xxxe for whatever reason. This was a change that came about just recently, the owner just announced that it was changing a few weeks ago and again, it was just idle curiosity on my part. No one is getting mad about it, slamming the business owner or anything like that.

 

[mrsd]

Random question on tipping/percentages

I think it is common, though obnoxious.

She should get (or give) a detailed accounting of what she earns and what her expenses are, and require a receipt for payments made to the owner. Then it should be tax deductible.

I tip in cash.

Sharon, I never thought about it years ago, until I started doing massage. I want to make sure the intended recipient gets the full amount I want THEM to have. And now I know how nice it is to have that $10 in my pocket to buy a gallon of milk on the way home!

 

[isitevil]

Random question on tipping/percentages

As a client when I get spa services I always ask if the person doing my service gets to keep the whole tip. I too always tip in cash and I leave the tip in the room. The front desk doesn't need to know what I tipped