Tipping is a way of showing that you appreciate the excellent service you have just received. But how much do we give and to whom?
Tipping remains at the discretion of the consumer. Of course, protocols on this small discretionary percentage vary by industry. Therefore, it is easy to wonder about the good habits to adopt when going to checkout. Follow these few recommendations from three customer service employees to make your job easier.
During this pandemic period, keep in mind that employees paid for tips may have to adapt their service to the health rules in force. Be understanding! The service can be just as good, even if it’s different from what you’re used to.
In catering establishments
Catherine works in a high-volume facility. For her, the tip corresponds to approximately 80% of her annual salary: this income allows her to pay her monthly bills. In his opinion, the amount goes beyond the quality of the service received. She explains :
At the bar
Employees depend on tips as their primary income. They expect to receive 20% of the invoice amount before taxes. Bar attendants keep their customer’s company. They talk to them. For Catherine, it is not because the service is less thorough that it does not require the same energy as in the dining room!
In the dining room
Decorum involves paying 15% for regular service (taking the order, answering questions, picking up everything the customer needs). For an upscale experience, put back 18% instead (describe the wine list, adapt the menu to a diet). Of course, this can all be increased to reflect the attentiveness and enthusiasm of your waiter or waitress.
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For takeout
If it’s a takeout order, you don’t need to tip. Catherine indicates that the employee who prepares your dish should not be taxed on the sale. For tax purposes, this kind of work is associated with the establishment’s deals, not the employee’s. A 5% is still appreciated if you had good service. However, a tip of 15%, as if it were table service, is not necessary.
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During a visit to the salon
Noémie is self-employed in a posh salon on the north shore of Montreal. She has over 20 years of experience. In hairdressing, the tipping rules are very different from the restaurant industry. The additional amount is considered a courtesy in this environment, not a norm. Is she financially dependent on this discretionary amount? The 30-something hesitates.
The tip adds approximately $15,000 more to Noémie’s annual salary, an amount that she duly enters in her income tax return. She admits that not all hairdressers declare their tips for tax purposes, even if they are legally required to do so. The colourist reveals to make a good living. Her brushstrokes are expensive, mainly because of her years of experience, her notoriety and the location of the salon where she works.
Noémie insists on her perception of tips as a courtesy. She understands that some clients give more or less depending on their situation, mainly their age and budget. Thus, she does not expect a young student to pay the same amount as a professional. According to her, the tip should not be calculated as a percentage but rather according to the quality and complexity of the service provided. She says she is delighted to receive between $20 and $25 per client. Keep in mind that hair colour can cost up to $200.
For beauty treatments
Nancy, who is a beautician, confirms Noémie’s statements. In its environment, tipping is seen as a bit of extra. Although it’s a polite practice, it’s pretty rare not to receive a tip at the end of a manicure or waxing session, she says. However, the amount varies on a case-by-case basis. It depends above all on the client’s age and the frequency with which she requests the service. Nancy says she receives an average tip of $10 for her work.
What about tax and tips?
Since it is considered income by the tax authorities, the tip must legally be included in the annual tax return of the workers concerned. It can be received directly, when paid by card or cash, or indirectly, through a tip-sharing plan administered by the employer. For employees in the restaurant, bar and hospitality industries
