http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/ Get Ready for Tax Season | Income Tax Filing | Tax Help | Tax Deductions | Online Tax Preparation | Business Taxes | Tax Shelters Tue, 12 Jan 2010 14:31:37 +0000 http://wordpress.org/?v=2.9.2 hourly 1 http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/comment-page-1/#comment-101 MathGoddess Fri, 06 Jul 2007 05:21:13 +0000 http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/#comment-101 You do NOT include tax in the tip. Deduct the tax and tip on the total food bill whatever is appropriate. You do NOT include tax in the tip. Deduct the tax and tip on the total food bill whatever is appropriate.

]]> http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/comment-page-1/#comment-100 Holly Golightly Mon, 02 Jul 2007 18:43:18 +0000 http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/#comment-100 I believe the suggested tips are calculated based on the tax, not the total plus the tax. Let's say your meal was $20. Then your tax should be $1.65 if your tax was 8.25% (in Los Angeles). Then 15% tip = $3.30 + $20 = $23.30 total 18% tip = $3.60 + $20 = $23.60 total 20% tip = $4.00 + $20 = $24.00 total I'm not sure how states with no tax would have suggested tip... they would probably use the food total to calculate the tax. I believe the suggested tips are calculated based on the tax, not the total plus the tax.
Let’s say your meal was $20. Then your tax should be $1.65 if your tax was 8.25% (in Los Angeles).
Then 15% tip = $3.30 + $20 = $23.30 total
18% tip = $3.60 + $20 = $23.60 total
20% tip = $4.00 + $20 = $24.00 total
I’m not sure how states with no tax would have suggested tip… they would probably use the food total to calculate the tax.

]]> http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/comment-page-1/#comment-99 meg Mon, 02 Jul 2007 17:58:37 +0000 http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/#comment-99 I guess it just depends on what state you're in. But if you're that concerned about it, just do a percentage of the bill beofre the tax was added, usually 15%-20% is the standard. That way, you're not basing the tip off of tax. I guess it just depends on what state you’re in. But if you’re that concerned about it, just do a percentage of the bill beofre the tax was added, usually 15%-20% is the standard. That way, you’re not basing the tip off of tax.

]]> http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/comment-page-1/#comment-98 Nicknet Mon, 02 Jul 2007 17:03:04 +0000 http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/#comment-98 That's NOT supposed to be including the tax, considering taxation is done by the govt. and restaurants only collect for the govt. But, generous people like my husband have spoiled the waiters and restaurants by tipping too much! That’s NOT supposed to be including the tax, considering taxation is done by the govt. and restaurants only collect for the govt. But, generous people like my husband have spoiled the waiters and restaurants by tipping too much!

]]> http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/comment-page-1/#comment-97 Limestoner62 Mon, 02 Jul 2007 16:56:02 +0000 http://www.setget.net/why-are-suggested-tips-in-restaurants-15-18-21-based-on-the-total-including-the-tax/#comment-97 Just ignore all that and tip what you think the service is worth, realizing your server probably is being taxed based on between 12-15% of estimated tips. Anything over 15% for good service is fair. Just ignore all that and tip what you think the service is worth, realizing your server probably is being taxed based on between 12-15% of estimated tips. Anything over 15% for good service is fair.

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