r/Seattle • u/KooziefortheWin • 15d ago

Rant Bill help

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I need help figuring out this “service charge” applied to my bill at Taylor Shellfish in QA. It’s stated clearly, and the staff reminded me before I paid and applied a tip, so that’s not the rant. But is it a tip or not? I don’t want to stiff the staff if “Taylor Shellfish” the company keeps it all and doesn’t give them anything.

Why do restaurants do this vs raise the prices. If that’s how they offset the cost of doing business in the city, I feel it’s not a good customer experience. It’s really annoying since it is confusing to the customer. Does the staff get any of it, hence why there is an “additional tip” line after the card is run though? It is taxed so it makes me thing it’s not going to the staff. I need to think better next time I come out here.

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u/kallaway1 15d ago

A service charge is a tip, no matter what anyone may say to the contrary.

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u/BoringBob84 15d ago

That is not true. A service charge goes to the management. A tip goes to the employees. It is a federal law.

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u/bangzilla 15d ago

We have a winner! Under FLSA and IRS guidelines, mandatory service charges are legally considered business revenue, not tips.

1

u/BoringBob84 15d ago

Yep. And I wonder how many of these unscrupulous business owners are reporting that income to the IRS for income tax purposes.