Feb

20

When to Tip? Who to Tip? What to do when in doubt?

February 20, 2008 |

Tip JarMost people seem to agree to tip waitress. Many suggest tipping barbers/hairdressers, bell boys, hotel housekeeping staff, the mailman, taxi drivers, pizza delivery, people who pick up trash at the curbside, and the list goes on. People differ in opinions and cite different reasons for tipping or no tipping. Even receivers differ. I have had people reject a tip offered: some personally offended, and some others prohibited from accepting it from their employer.

Here is a list of tipping strategies I have seen:

  • Emily Post Rules - Whatever the Emily Post’s Etiquette, 17th Edition (Thumb Indexed) says, is law: tipping and holiday tipping (charts with suggestions).
  • Will Work For Tips Rule - If the person does not make a certain level of income (minimum wage, living wage, or any other measure), you may want to tip. The tip is in lieu of a fair salary, where the customer pays instead of the employer. Some people earn only a few bucks an hour or no salary at all and expect a tip. These people should be tipped if you accept their service.
  • IRS Rule - If the IRS expects them to have tips on their W-2, then it may be fair that they are tipped. This is particularly common for restaurant and bar employees to whom this rule applies. On many circumstances these people are obligated to report at least 8% on tips (note it is less than 15% and gives the tipper some leeway without causing injury).
  • The Value Added Rule - If the person provides something beyond what you are paying for, then it makes sense to compensate that person. Some people tip on “Exceptional Service“. I like to generalize it a bit more to service that was appreciated, although not expected and agreed upon when making the transaction.
  • The Tip Jar Rule - If they ask for it you give, some people place a tip jar, some others extend their hand. Other people just leave you a blank on the guest check where you place your tip. All of this are requests for tip.

Which options should we choose? All of them seem sensible. All of them have some correlation among themselves. But which one should be the one we personally use when the matter is not so simple as looking into a tipping chart?


Comments

1 Comment so far

  1. Tipping Cash? Tipping Credit Card? | Money And Investing on February 20, 2008 12:02 pm

    [...] while for others, the decision to tip cash vs. credit seems to have religious significance. I have heard several reasons, along with my thoughts on [...]

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