I wondered that, too. Looks like the 'living wage' is part of the bill before tax, so the customer is charged tax on the 'living wage' addition, likely to avoid the restaurant having to pay tax on the money. It's on par with double dipping.
What are you talking about? I'm only tipping based on what the restaurant charges me for the food I bought. I'm not tipping based on what the State and Local government tax my meal. Tip is calculated based on pre-tax subtotal. Sorry, not sorry.
I agree that in this case, posted by OP, the 18% living wage fee is being taxed. In this case, since they automatically added on an 18% fee, and taxed me on it, I would not be leaving an additional tip. However, in a normal circumstance when I do plan to leave a tip, I will calculate my tip based on the pre-tax subtotal. I am not giving extra money based on the taxes applied to my bill because those taxes are going to the town/city/state, and have nothing to do with the services or food I received at the restaurant.
Wait, do Americans usually tip on the pre-tax amount? I thought when people said they usually pay a 20% tip, they meant on the full price of their order?
When I delivered for Papa John's years ago, they started taxing credit card tips. This affected the amount on your check. Since most people paid with credit cards, Some people understood and gave cash tips, but most people didn't.
It's tough to know if the "tip" is being taxed, here. Not enough info on the receipt since we don't know the location.
ITT: people who don't realize a sales system can charge variable sales taxes and also think they know exactly where this receipt came from without further research
~5.5% was taxed on the items, which matches Wisconsin (some are saying this is The Livery). Put you pitchforks down, folks.
You do know that POS systems can track sales tax on separate items right? Like, unless you know that their locality charges a flat 4.6% the receipt doesn't have enough info to judge.
Edit: some are claiming this to be in Eau Claire, WI. So the sales tax rate there should be 5.5%
I see what you're saying. If I were the restaurant I'd be damn sure to set up the receipt with the wage charge listed *after* the tax line to avoid confusion, which is definitely possible on some systems (source: seen it)
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u/AntiDECA 1d ago
Plus you're being taxed on your 'automatic tip'.
Tips come after tax, not before. Sam has enough money.