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.Originally Posted by mdsn
