Reporting Tip Income to the CRA

[Marc]

In Quebec the restaurant must report it's daily sales and keep a log of the staff that worked so that the tips collected can be estimated by the government.

Marc

[sillyia]

You must also consider that the restaurant that started this discussion is not simply tipping out the service staff and the kitchen. They are also tipping out their management who are making a very decent salary. I feel this is very unfair. Why pay a manager 44K Plus then take from your minimum or less than minimum wage employees ?
I have been to the restaurant and heard the complaints on more than one occasion which should not happen within hearing distance of the customers.

[Bob Fugger]

Originally Posted by sillyia

You must also consider that the restaurant that started this discussion is not simply tipping out the service staff and the kitchen. They are also tipping out their management who are making a very decent salary. I feel this is very unfair. Why pay a manager 44K Plus then take from your minimum or less than minimum wage employees ?
I have been to the restaurant and heard the complaints on more than one occasion which should not happen within hearing distance of the customers.

$44k for a restaurant manager is peanuts, given the hours that s/he puts in and the network of contacts/customers that should be brought in. A share of the tips is a way for ownership to bonus their managers without hurting (a slowly eroding) net profits. As tips are commensurate with sales, it provides incentive to the manager to build sales, which in turn drives up total tips for all.

All that said, while we do require servers to tip out the house (I.e., kitchen, bussers, expediter, hostess and bar), we do not require them to tip out the manager (who is often doing many of the listed tasks, except cooking).

[G-Man]

Originally Posted by sillyia

You must also consider that the restaurant that started this discussion is not simply tipping out the service staff and the kitchen. They are also tipping out their management who are making a very decent salary. I feel this is very unfair. Why pay a manager 44K Plus then take from your minimum or less than minimum wage employees ?
I have been to the restaurant and heard the complaints on more than one occasion which should not happen within hearing distance of the customers.

Hearsay.

[VicHockeyFan]

Originally Posted by Bob Fugger

$44k for a restaurant manager is peanuts, given the hours that s/he puts in and the network of contacts/customers that should be brought in. A share of the tips is a way for ownership to bonus their managers without hurting (a slowly eroding) net profits. As tips are commensurate with sales, it provides incentive to the manager to build sales, which in turn drives up total tips for all.

All that said, while we do require servers to tip out the house (I.e., kitchen, bussers, expediter, hostess and bar), we do not require them to tip out the manager (who is often doing many of the listed tasks, except cooking).

Well, give him/her a better incentive than a portion of tips, let them in on profit-sharing (best), or a percentage of sales (not as good, since costs are not considered).

[Bob Fugger]

Originally Posted by VicHockeyFan

Well, give him/her a better incentive than a portion of tips, let them in on profit-sharing (best), or a percentage of sales (not as good, since costs are not considered).

I'm not saying that it's the best bonusing scheme - but it does explain why some places tip out management.

[sillyia]

Originally Posted by G-Man

Hearsay.

Not "Hearsay". I have stated my daughter owns a restaurant and I do watch craigslist here for positions for my grandaughter. I saw the ad for a manager for the front of the house. I also heard complaints. I believe it is unfair for tips to go beyond the service staff and the lower wage kitchen workers. That is what bonuses and profit sharing are for in my opinion.

There are not many places where I can walk to have a cocktail and enjoy Mt. Baker when it is out since the restaurant is just a few doors up from me.

[Holden West]

Managers demanding servers tip other managers is pure sleazeball. There's a division between management and staff. Like VHF says, if anything managers should receive profit sharing from the owners.

[G-Man]

Originally Posted by sillyia

Not "Hearsay". I have stated my daughter owns a restaurant and I do watch craigslist here for positions for my grandaughter. I saw the ad for a manager for the front of the house. I also heard complaints. I believe it is unfair for tips to go beyond the service staff and the lower wage kitchen workers. That is what bonuses and profit sharing are for in my opinion.

There are not many places where I can walk to have a cocktail and enjoy Mt. Baker when it is out since the restaurant is just a few doors up from me.

Unless the ad you saw indicated that part of the compensation package included tips form other staff or you have actual evidence that this is going on apart from overhearing comments while there, than your comment was the definition of hearsay.

[sillyia]

Originally Posted by G-Man

Unless the ad you saw indicated that part of the compensation package included tips form other staff or you have actual evidence that this is going on apart from overhearing comments while there, than your comment was the definition of hearsay.

What I can and will say is that the ad was in craigslist. I went and found it. Whatever complaints the staff speaks of is what I overheard. Perhaps, that is hearsay in your opinion. Here is the ad. I do not believe anyone placing such an ad would call it other than a bonus if it was not. I have seen such ads prior that managers receive tips here. I was appalled.

Note that I did qoute the salary incorrectly at 44K as it was 40K.

Front of House Manager (The Beach House, Saanich BC)

Date: 2012-07-03, 2:53PM PDT
Reply to: c9tmz-3117098807@job.craigslist.org [Errors when replying to ads?]



Front of House Manager and Experienced Bar Manager required for busy restaurant. Must be able to handle 30+ staff, 200+ seats. New restaurant so lots of room for creativity and leadership. Team skills are essential! Please send us your resume and advise of your availability.

• Location: The Beach House, Saanich BC
• Compensation: $40,000 per year plus tips
• Principals only. Recruiters, please don't contact this job poster.
• Please, no phone calls about this job!
• Please do not contact job poster about other services, products or commercial interests.

http://victoria.en.craigslist.ca/fbh/3117098807.html

[G-Man]

That could be an issue. It would depend on how the tips are earned. I don't disagree with what you beliee is wrong.

That said I could read it as how I used to work. I used to manage a restaurant and when it was busy I took tables and I certainly kept the tips I earned (after tipping out). That said I was not making a salary close to 40k.

[Sparky]

There were times when the waiter/waitress put 100% of the tip in his/her pocket and didn't share it with the CRA or the chef, buss persons, dishwashers, etc.

What is the most ideal (respectful) way of dividing up a $1 tip today?

I've been out of this game too long to know.

[sebberry]

I don't see a problem with a manager collecting tips on the tables he/she served, but collecting a portion of the tips earned by the servers? Crossing the line, IMO.

[G-Man]

It used to be 5% of sales would be tipped out. 1% to host/busser 1.5% to bar, 2.5 to kitchen. Of course every restaurant is going to be different. I would always pad the kitchen tip out (or buy them beers) because that way you got your food a little faster prettier and your redos right away. This of course led to higher tips.

[Sparky]

Thanks G-Man.

So would tips add up to 5% of sales? I was hoping it would be a little bit more. I leave 10% for average service, but if something really special was going on it would be more.

On the rare occasion if something nasty happened....0

EDIT So I get it, the rest goes to the wait person.

[G-Man]

Well generally you used to hope for 15 at cash out but you never know right. I couple of stingy tables and you are in trouble. So the server is getting 10 percent hopefully and 5 to the rest.

[spanky123]

Last time I spoke with a buddy of mine at the CRA he told me that 90% of investigations of restaurants started with a tip from a disgruntled (ex)employee. Something to think about!

[Bob Fugger]

I don't understand the ire behind people's comments, of these supposed robber baron managers shaking down poor, defenceless servers. On a busy night, a manager essentially fulfills the role of a support staff, bussing tables, running and expediting food and hosting - not to mention his/her managerial duties. So the manager runs his/her ass off and the server walks out with $200 in tips. What you guys should be more pissed off about is waitstaff complaining or outright stiffing the house when it comes to sharing their tips.

I remember the days of sweating in filth, washing dishes and overhearing waitstaff bîtch as they dropped their plates off, about how much they have to tip out the kitchen, usually as the manager walked by to remind them to pick up the three paycheques sitting in his office that they keep forgetting to pick up, because the tips are so good that they forget that they get a paycheque on top of it. Seriously, give your heads a shake.

[G-Man]

^ Also a good point. And right back on topic of taxes

[OSJ]

i never expect any sort of tips when i am helping out in the pub, thats my job as a manager.
as for the tips, the server tips the bartender a % of there total sales, and they tip the kitchen a % on food sales.
so if you have a big table of tourists that dont tip, the table actually costs the server money cause they need to tip the bar out of there own pocket. this happens more than you think downtown.

[kenjh]

Ok ..this has been a learning experience ..I did not know tip's were considered income..or that the kitchen staff got anything ..my stint washing dishes at La'Tora Della on govenment st helped me get a better job away from that line of work..I am pretty sure most people going to a restaurant don't know anything other then the person that comes to the table and tip according to how the service is ..I never tip when I get poor service ,,and I don't have high expectations in most places .