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Geronimo BBQ Super Pro
Joined: 29 Jul 2007 Posts: 2896 Location: Montgomery, Texas (and lovin' it)
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Posted: Jul 11 2011 Post subject: |
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Good point Harry and my company does disburse any and all gratuity to any and all employees that work any given event.
As a paid (salary) employee of this catering company, (corporation) If I work an event, I share in any gratuity received (mandatory or voluntary) as is every employee of this catering company.
Any and all gratuity for this catering company is reported as income to the company as required by law and thus the proper taxes are paid on same.
Do you (or anyone) report and pay taxes on "cash" gratuities you receive???
BTW, that law you quoted does not refer to or apply to catering companies for this state.  _________________ Where rumors end and legend lives forever... |
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Inner10 BBQ Super Pro
Joined: 30 Apr 2010 Posts: 1289 Location: Ottawa, ON
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Posted: Jul 11 2011 Post subject: |
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| Quote: | | Case in point, one of my regular helpers also works PT for another catering company. Last week he had to arrive at the event site @ 7:30AM to help (2 of them) set up the event to include; rented tables, chairs, linens, polish silver, glasses, etc.... |
I see nothing wrong with your case, presumably the client agreed to the price, the employee agreed to the wages and it just so happened they made a higher profit than you would have.
I do, however, agree that in the food service industry everyone has a good idea of food costs...unlike electronic controls. \
| Quote: | Most people would expect that the gratuity for the service would go to the servers as part of their total compensation.
Whereas a higher plate charge would be expected to go to the catering business operator. |
Harry you are absolutely correct. Apparently I didn't think about it that way.
| Quote: | | Do you (or anyone) report and pay taxes on "cash" gratuities you receive??? Shocked Shocked Shocked |
Everyone absolutely does since it is the law. (public forum)  |
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Louie BBQ Super Fan
Joined: 25 Oct 2010 Posts: 491 Location: Canada
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Posted: Jul 11 2011 Post subject: |
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@inner10
Most caterer's bid or quote for the gig's, adding a 15-20% tip to the plate at the starting gate or re-itemizing as you suggest wouldn't fly, gig's would be few and far between.
Robbing Peter to pay Paul is gonna bite you in the butt sooner or later, whether you cater, vend, or flog whatever..imho
@Geronimo, wow marv that was a great payday..  _________________ From vending to Brick & Mortar |
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Pit Boss BBQ Super Pro

Joined: 04 Sep 2008 Posts: 2362 Location: Mt. Pleasant, South Carolina
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Posted: Jul 11 2011 Post subject: |
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| Geronimo wrote: | | Do you (or anyone) report and pay taxes on "cash" gratuities you receive??? |
That's a rhetorical question, right? LOL
Cash sales have made more than one person a pretty decent living. But out government pushes them to do it...and I won't take that conversation a step further. _________________ Somewhere in Kenya...a village is missing their idiot. |
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Geronimo BBQ Super Pro
Joined: 29 Jul 2007 Posts: 2896 Location: Montgomery, Texas (and lovin' it)
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Posted: Jul 11 2011 Post subject: |
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| Pit Boss wrote: | | Geronimo wrote: | | Do you (or anyone) report and pay taxes on "cash" gratuities you receive??? |
That's a rhetorical question, right? LOL
Cash sales have made more than one person a pretty decent living. But out government pushes them to do it...and I won't take that conversation a step further. |
I didn't REALLY expect an honest answer to that question
I know the government has already automatically added estimated tips/gratuities (for tax purposes) to waitstaff working in restaurants. They have yet to do this in other food related (Catering) areas...and let's all hope the heck they don't do it anytime soon.  _________________ Where rumors end and legend lives forever... |
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Poppa's PTL Club BBQ Super Pro

Joined: 13 Sep 2007 Posts: 1578 Location: Lawrenceville, GA
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Posted: Jul 12 2011 Post subject: |
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I have been doing a lot of investigation into this lately for a number of purposes and the IRS has made some changes as of April this year (my profession is as an auditor, so this isn't some jerk-off spouting bile here).
A mandatory gratuity is required to be distributed to employees as income with all concomitant income related taxes due. Failure to pay them does not alleviate the owner or the employee's (contractor's) responsibility for paying these employment related taxes.
Read more here:
http://www.tipcompliance.com/polLearningCenter.cfm?doc_id=2
This is new and there is a lot of furious lobbying going on to change this, but it is law. I would highly recommend a talk with your tax advisor (nothing I say here is offered or should be construed as legal or professional advice) _________________ I likes to eat 'da pig!
Acts 11:5-9 |
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Geronimo BBQ Super Pro
Joined: 29 Jul 2007 Posts: 2896 Location: Montgomery, Texas (and lovin' it)
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Posted: Jul 12 2011 Post subject: |
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A couple of years ago I catered a party for a retiring IRS auditor and when she received the invoice showing the tax amount she changed it without calling me to talk about it because where she lived (where the party was) was .01% different than what I quoted on the invoice. It amounted to like $.18 cents.  _________________ Where rumors end and legend lives forever... |
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Slo Smoked Mo Better Newbie
Joined: 14 Feb 2008 Posts: 58
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Posted: Aug 02 2011 Post subject: |
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Marv,
Bottom line is you took the job under your conditions...if you didn't like them, pass on it and by all means don't book it again for next year. Why do some professions naturally think they deserve a tip? I do my job day in and day out as well as 80% of the other professions without ever receiving a tip?
Oh, and Marv I do cater part time too. And I don't EXPECT a tip and price the jobs to be competitive and also make me money so I don't have to whine if someone doesn't tip me.... |
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Geronimo BBQ Super Pro
Joined: 29 Jul 2007 Posts: 2896 Location: Montgomery, Texas (and lovin' it)
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Posted: Aug 02 2011 Post subject: |
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| Slo Smoked Mo Better wrote: | Marv,
Bottom line is you took the job under your conditions...if you didn't like them, pass on it and by all means don't book it again for next year. Why do some professions naturally think they deserve a tip? I do my job day in and day out as well as 80% of the other professions without ever receiving a tip?
Oh, and Marv I do cater part time too. And I don't EXPECT a tip and price the jobs to be competitive and also make me money so I don't have to whine if someone doesn't tip me.... |
Good for you..  _________________ Where rumors end and legend lives forever... |
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Poppa's PTL Club BBQ Super Pro

Joined: 13 Sep 2007 Posts: 1578 Location: Lawrenceville, GA
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Posted: Aug 02 2011 Post subject: |
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That's really unfair, we have an honest share here from a guy defending his business practice and explaining why he builds a mandatory gratuity into his business practice and gets accused of "whining".
Want to know why people aren't honest and share more of how they run their business and present other ways of doing things you haven't considered? Read above and you'll see why. _________________ I likes to eat 'da pig!
Acts 11:5-9 |
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Slo Smoked Mo Better Newbie
Joined: 14 Feb 2008 Posts: 58
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Posted: Aug 04 2011 Post subject: |
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| Poppa's PTL Club wrote: | That's really unfair, we have an honest share here from a guy defending his business practice and explaining why he builds a mandatory gratuity into his business practice and gets accused of "whining".
Want to know why people aren't honest and share more of how they run their business and present other ways of doing things you haven't considered? Read above and you'll see why. |
Honestly, do think he is not whining about just getting a thank you card instead of a tip? |
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BBQMAN BBQ Super All Star

Joined: 13 Jun 2005 Posts: 15475 Location: Florida
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Posted: Aug 04 2011 Post subject: |
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I don't always get one, but I do expect a tip for a job well done in this industry.
A thank you card is nice, but doesn't provide a tip.
Heck, my welder buddy (web guy, lawn man, mechanic, the list could go on) doesn't expect one either, but when warranted gets a little something extra even if it's a slab of ribs (or in the case of my mechanic salmon) as a thank you.
Honestly, if you think a card or slap on the back (or plate of store bought cookies) is a tip then you are either joking or severely misinformed. _________________ BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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Poppa's PTL Club BBQ Super Pro

Joined: 13 Sep 2007 Posts: 1578 Location: Lawrenceville, GA
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Posted: Aug 05 2011 Post subject: |
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| Slo Smoked Mo Better wrote: | | Honestly, do think he is not whining about just getting a thank you card instead of a tip? |
Honestly, no, I think he's defending his practice and explaining why he does it. You don't have to accuse him of whining to disagree with the practice.
Here's the case with all the assumptions:
We know Geronimo has a mandatory gratuity that is built into his pricing and for which he takes a fair amount of grief.
He waives the mandatory gratuity in this case and doesn't receive one voluntarily, whereupon he posts his experiencem essentially saying "See, THIS is why I charge a mandatory one as business practice."
You then tell him he's whining. I think that's unfair. Feel free to disagree  _________________ I likes to eat 'da pig!
Acts 11:5-9 |
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Geronimo BBQ Super Pro
Joined: 29 Jul 2007 Posts: 2896 Location: Montgomery, Texas (and lovin' it)
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Posted: Aug 05 2011 Post subject: |
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The point I was trying to make is pretty close to what Poppa's PTL Club said in the above post. Regardless weather or not you do a good job, MOST people do NOT add on a gratuity (unless you live in The Northwoods.. and then you get one EVERY time )
For this particular job I went WAY above and beyond by adding a LOT of extra help, having to rent a large truck to haul it all and a few other "essentials" that I felt were required to pull this one off with the ease I felt it required.
And no, I could NOT add all those charges onto the bill as we had agreed to the $10 PP price (before tax) INCLUSIVE.
This past weekend I catered a wedding for 275 and did charge my normal "mandatory gratuity" and still received a very nice "Thank you" note via email from the brides parents.
But hey, if a a caterer doesn't want to charge a gratuity, I am ok with that. I won't call you names because you do things differently than I do.  _________________ Where rumors end and legend lives forever... |
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Harry Nutczak BBQ All Star

Joined: 01 Mar 2007 Posts: 8558 Location: The Northwoods
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Posted: Aug 09 2011 Post subject: |
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| Geronimo wrote: |
For this particular job I went WAY above and beyond by adding a LOT of extra help, having to rent a large truck to haul it all and a few other "essentials" that I felt were required to pull this one off with the ease I felt it required.
And no, I could NOT add all those charges onto the bill as we had agreed to the $10 PP price (before tax) INCLUSIVE.
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So how would a gratuity that is supposed to go to the hired help offset the extra expenses which you have incurred to do the job correctly? _________________ Just remember that the toes you may step on during your climb to the top will also be attached to the a$$es you'll be forced to kiss on your way back down! |
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Geronimo BBQ Super Pro
Joined: 29 Jul 2007 Posts: 2896 Location: Montgomery, Texas (and lovin' it)
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Posted: Aug 09 2011 Post subject: |
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| Harry Nutczak wrote: | | Geronimo wrote: |
For this particular job I went WAY above and beyond by adding a LOT of extra help, having to rent a large truck to haul it all and a few other "essentials" that I felt were required to pull this one off with the ease I felt it required.
And no, I could NOT add all those charges onto the bill as we had agreed to the $10 PP price (before tax) INCLUSIVE.
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So how would a gratuity that is supposed to go to the hired help offset the extra expenses which you have incurred to do the job correctly? |
It wouldn't silly But it would of been nice to at least have them recognize that we put forth a LOT of "extras" and extra effort into pulling this off for the price they were seeking.  _________________ Where rumors end and legend lives forever... |
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BBQMAN BBQ Super All Star

Joined: 13 Jun 2005 Posts: 15475 Location: Florida
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Posted: Aug 09 2011 Post subject: |
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| Quote: | | But it would of been nice to at least have them recognize that we put forth a LOT of "extras" and extra effort into pulling this off for the price they were seeking. |
In the end, you just answered your own question here Marv!
The price they were seeking clearly did not have room to include a tip!
Want to hear a real "A$$ Chapper"?
Sure you do!
The client we had three weeks ago told me after the event that we had done a great job, and that the person who signs the check was not there so our gratuity would be mailed out as a secondary payment.
Three weeks later no "check in the mail".
Yeah, that's totally fair!
Wouldn't you all agree that is something valid to biotch about?  _________________ BBQMAN
"I Turned A Hobby Into A Business".
Providing "IMHO" Since 2005. |
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