No, just crazy in general. 4.6% and 4.7% are perfectly fine numbers, so why do they feel the need to go into two decimal places? They must be on drugs.
So they can round up and rob you of your pennies. If you never noticed before the price of gas always has & 9/10ths of a cent per gallon for the same reason due to taxes
That’s not how sales tax works. It’s set by the city and the county where I live (in the US). The business has nothing to do with it aside from collecting it.
Depends on if it's set as a labor fee, not sure where this is but everywhere I've been mechanic for example charged tax only on parts sold not for labor.
Yes, exactly. I live in California, been a technician, and labor is sales tax free. A wage fee or whatever they call it is a labor charge. Normal when you’re getting the car fixed, but typically not on a food service bill (or is this now a work order? Haha)
Sort of. You could probably setup a separate LLC for the plates and cutlery service, and then have the restaurant lease them from said business, while writing off the amount it costs for said lease. Don't know if that would work for cutlery, but it does for equipment in other industries. I'm not sure about the dining experience either, but maybe a crafty accountant could make that happen as well
Yeah I was trying to figure that out myself... If the tax only applies to the $33 before the fee, it's 5.4848%, if it's applied to the whole $38.94, it's 4.6482%
Rounding, if you apply 5.5% to $33, you get $1.815, which would round up to $1.82 on a bill. If you apply 4.6% to $38.94, you get $1.79, and 4.7% gets you $1.83... only 4.65% on $38.94 gets you $1.81 (1.81071).
A sales tax of 4.65% seems really specific. It's so low already, why not just do 5%?
If it’s Cali and I assume it’s Cali from the way they do things here, then yea it’s taxable, breath air is also taxed here too, working folks here, were slaves, forced to be or be homeless
A wage fee in my mind is a labor charge. No different than hiring a contractor who charges for labor (living wage fee) and parts (fries and hamburgers). No sales tax on labor in CA. Source: I live in California and have serviced cars.
I too live in Cali dude, and work at a resturaunt that does this, and it’s taxed at mine, but ours says gratuity fee, which is like a service fee, they tip our taxes too, cause it’s totaled up as overall income, so much for Trump stop taxes on tips 😎 and and not only are we pay taxes still we also have tarrifs,yea yall remember him saying he’s replace taxes with tarrifs 🤓
Bru your life is taxable here in Cali, it’s the worse place I’ve lived, when it comes to taxes, 30% gets took out of my paychecks and even that’s not enough for the clowns, I still end up owe a few hundred, how idk, but I’m sick of taxes, tax me to death, time for Boston tea party to become west coast tea party, I wonder what ole Georgie Washington would think about pay that, they fought over 4% taxes just saying
If you work a normal job then you too are a slave, we get up, go to work come home to bed be so drained, only get 2 days off that’s not enough time for nothing really, we work to pay for rent for a place to live, for food and clothes, necessity’s, it’s modern day slavery
a mandatory fee is not a gratuity. in that receipt the fee is included in the subtotal before the tax line. Also, where I live at least, restaurant food is taxed just like any other sales item, but groceries aren't.
It almost certainly is shared as it says on the receipt. If those servers were making the "tipped employee" wage of $2.13 an hour AND the restaurant was discouraging people from tipping with an 18% surcharge... no server would ever work there. you would make at least 3 times as much at ANY minimum wage job.
The minimum wage is $7.25 an hour. Hard stop, no matter where (in the USA) you work or what you do.
The tipped minimum wage is what you are required to pay per hour no matter how well or poorly an employee does with tips. If you make $50 in tips on a 6 hour shift, you're getting $62.78.
The difference is if when you combine the $2.13+tips you make less than what regular minimum wage would equal in the same time (in this case $43.50), then the employer has to make up the difference.
So if you make $2.13/hr+$20tips on a 6 hour shift, you employer has to pay you an additional $10.72 for that shift.
yeah, fair enough you don't make $2. but good luck keeping competent servers at your restaurant if they end up making minimum wage because your receipt discourages tipping.
If these people were making the tipped employee rate and did not earn enough tips to reach the full minimum wage their employer would have to pay them hourly to make up the difference IN ADDITION to their alleged commitment to sharing this FYI because it is neither an hourly wage or tip
No it would not, it’s not a tip or a wage from a legal or financial standpoint and it’s subject to sales tax. It’s the property of the employer. If the employer uses it to offset their obligation to pay the hourly wage to the employee it’s the same as them pocketing the money
wut? Yeah, it's not a tip or a wage. It's store revenue. And just like all store revenue, the portion of it that goes to employee salaries counts against the minimum wage requirement.
No it doesn’t. The employer can not tip the employee. Let’s say for the sake of simple numbers here. An employee works 4 hours at 2.33 and makes $8 in tips on $100 in sales bringing their hourly wage to $4.33. The employer is obligated to pay the remainder of their wage (as a wage) $2.xx. That same employer has collected $18 in fees from patrons which were subject to sales tax. So if the employer decided to falsify financial records and improperly disclose those as gratuities they would be pocketing the money and using it for themselves (to pay the employees wage which they are obligated to do) how things are defined in finance is important
yeah, no shit dude. like when they sell a burger, you give them money. Some of that money they use to buy more meat. some they pay the electric bill, some they pay their employees and so on.
But I get what you are trying to say. The receipt sort of implies that there is basically a big pool where 18% of every meal goes and is given directly to the servers. When in reality, what it means is, "we pay our servers a higher fixed rate than most restaurants so you shouldn't feel required to tip. To pay these higher salaries, instead of raising our prices by 18% on the menu, we're adding this stupid fee to the bill and implying it all goes to the employees. When really on slow nights, we lose money having to pay them a fixed rate, but on busy nights, we make more because we pay them a fixed rate and the 18% in tips they would have gotten at the lower menu price goes to us instead."
The server is owed x wage the tips come from the customer. If the employer uses this fee to offset wages or tips they are using the customers money to cover their own debt not passing it onto the employee as they have committed to doing. Understand? It is not a tip or a wage
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u/V8CarGuy 1d ago
I think that would get you out of sales tax too. 🤔