Gratuity (tipping) Before or After taxes?

posted 3 years ago in Vancouver
Post # 3
Member
610 posts
Busy bee
  • Wedding: August 2014

@lilwickedful:  I always tip on the total before taxes.  Not sure what the proper etiquette is but I look at as tipping on the portion of the good or service that the vendor is providing. 

Post # 4
Member
42469 posts
Honey Beekeeper
  • Wedding: November 1999

@lilwickedful:  Gratuity is calculated before taxes. There is no reason to tip an extra percentage on the amount that is going straight to the government.

Post # 5
Member
6505 posts
Bee Keeper
  • Wedding: June 2013

We usually tip before taxes.

Post # 6
Member
2421 posts
Buzzing bee
  • Wedding: February 2015

Here its before taxes… but its also taxable.  So you pay taxes on the gratuity. Annoying. 

Post # 7
Member
42469 posts
Honey Beekeeper
  • Wedding: November 1999

@sostobe:  Gratuities are income. Why shouldn’t it be taxable?

Post # 8
Member
2421 posts
Buzzing bee
  • Wedding: February 2015

There’s two reasons it’s annoying me.  1.  I hate gratuity being added to a bill.  IMO, it should be my discretion for a job well done.  Which means it would come after the fact.  I’ll give you the amount I think is reasonable for the service I’ve received.  What you owe the government out of that is not really my concern.  2.  I also hate that tax is added to items at the register.  I’m going to be paying the tax either way, so just lump it in from the start, like its done in a number of other countries.  An item or service is 13% higher than the ticket, so just call it that price from the start.  

Post # 9
Member
42469 posts
Honey Beekeeper
  • Wedding: November 1999

@sostobe:  Sorry, I may have misinterpreted your response. I thought you were expressing unhapiness that people who receive tips have to declare them.

I too believe that gratuities should be optional for good service- not just for doing your job. And yes, I am prepared for prices to go up in order for employers to pay their staff a living wage. I am also suspect that wedding vendors actually share the total amount of gratuity they receive with the staff.

It would be easier if taxes were added into the price but not everything is 13% higher- it depends on if it is PST or GST or both, that have to be added.

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