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And all I received was a "Thank you" card..
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Geronimo
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PostPosted: Jul 11 2011    Post subject: Reply with quote

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??? Shocked Shocked Shocked

BTW, that law you quoted does not refer to or apply to catering companies for this state. Shocked Shocked
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Inner10
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PostPosted: Jul 11 2011    Post subject: Reply with quote

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. Wink Laughing \

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) Razz
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Louie
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PostPosted: Jul 11 2011    Post subject: Reply with quote

@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. Laughing Laughing

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.. Wink
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Pit Boss
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PostPosted: Jul 11 2011    Post subject: Reply with quote

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.
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Geronimo
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PostPosted: Jul 11 2011    Post subject: Reply with quote

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 Laughing Laughing

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. Twisted Evil
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Poppa's PTL Club
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PostPosted: Jul 12 2011    Post subject: Reply with quote

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)
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Geronimo
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PostPosted: Jul 12 2011    Post subject: Reply with quote

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. Shocked Shocked
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Slo Smoked Mo Better
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PostPosted: Aug 02 2011    Post subject: Reply with quote

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
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PostPosted: Aug 02 2011    Post subject: Reply with quote

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.. Rolling Eyes Rolling Eyes
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Poppa's PTL Club
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PostPosted: Aug 02 2011    Post subject: Reply with quote

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.
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Slo Smoked Mo Better
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PostPosted: Aug 04 2011    Post subject: Reply with quote

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
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PostPosted: Aug 04 2011    Post subject: Reply with quote

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.
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Poppa's PTL Club
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PostPosted: Aug 05 2011    Post subject: Reply with quote

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 Very Happy
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Geronimo
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PostPosted: Aug 05 2011    Post subject: Reply with quote

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 Shocked )

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. Wink
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Harry Nutczak
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PostPosted: Aug 09 2011    Post subject: Reply with quote

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.


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?
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Geronimo
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PostPosted: Aug 09 2011    Post subject: Reply with quote

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.


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 Rolling Eyes Rolling Eyes 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. Shocked
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BBQMAN
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PostPosted: Aug 09 2011    Post subject: Reply with quote

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! Wink Rolling Eyes Confused Shocked Laughing Laughing Laughing

Want to hear a real "A$$ Chapper"?

Sure you do! Razz

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! Rolling Eyes Rolling Eyes Rolling Eyes Rolling Eyes Rolling Eyes Rolling Eyes Mad

Wouldn't you all agree that is something valid to biotch about? Mr. Green
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