Tipping
During my recent trip to Jamaica I went to several restaurants that did not allow you to add a tip to the bill so I had to tip in cash. This of course made me use up more of my cash than I had expected.
Why do they not allow you to add in the tip to your bill?
Thanks.
One reason might be that they want to keep the tip "off the book" as they pay GCT tax on revenue. At least I think that the tips are considered as revenue. Perhaps others might know better as I never go to a restaurant where they add tips.Originally Posted by CaptainJim
Peace and Guidance
Free Opinions Offered. No tipping required. Hours: Open when I feel like it.
I'm not saying THEY add tips. I want the ability for ME to add a tip.
I think that if you add the tip to the bill there is a good chance your server or bartender may not see that money...I like to leave cash and make sure I give it directly to the person that helped me :-)
My answer would remain unchanged. The gov't requires businesses to collect a GCT tax based on sales and then pay what they collect. I am suggesting that if the bill is $800j and you give them $1000j (includes a $200j tip) then "perhaps" the GCT has to be collected and paid on that amount too. Maybe I am wrong and the tip is considered "non - GCT" but others may know for sure.
Peace and Guidance
Free Opinions Offered. No tipping required. Hours: Open when I feel like it.
Plus, credit card companies charge fees based on the total amount of the bill. By keeping the tips out of the credit card machine they might save a few pennies per transaction, but the savings would add up over time.
Johio
Is the jamaican service industry (waiters in particular) set up like we have it in the states? Decades ago, when I worked as a waiter, I remember my wages were low because we made tips... But then the tips were taxed out the wazoo on our checks.
I've also often wondered if the credit card companies hit the jamaican businessman as badly as we sometimes see here for international charges. I had one card I used a couple years back (it was either a citi or a chase card) which every charge I made had 7% tacked on as an international conversion. That would start to add up quickly on the business side.
Bill is basically correct. Regardless of the system, If its cash it stays off anyboby's books, the business and/or the server. Credit Card companies also then miss the chance to hit it with a service charges, both the normal servicing fee and the foriegn service fee.
Cash is better all the way around for everyone
I agree that tipping in cash is better in Jamaica,primarily because it allows me to avoid the ridiculous exchange fees. In the States, I always tip on my card to make sure that the tips are counted as wages and that they're taxed appropriately. Not just for equity in income tax collection, but for the purposes of Social Security wages as well. Restaurants do not by and large have great retirement plans, leaving servers unable to get the full credit for monies earned unless they voluntarily report every dollar collected in tips (yeah, right). Having tips included as wages, which they are, allows the waitstaff to get a larger Social Security benefit, plus it's more fair.
