People have different opinions about tipping. And societal norms change over time. Consider the growing number of ways for you to tip. Coffee drinkers would order a latte and then toss some change into a tip jar afterward. Today, customers can add a tip to every latte they purchase on the screen of their credit card. It’s no wonder that people are confused about tipping. There are some rules that you should follow when tipping a server.

According to a recent study conducted by Credit Cards on sit-down restaurants, the percentage of diners who “always” tip has decreased by two percentage points from 2019. A poll found that younger generations are less likely to tip. We can’t all make up the difference with one generous tip. But now is not the time to tip badly. Here are some tips to keep in mind.

1. Your tip is a big part of a server’s income.

In the United States, unlike many other countries that pay a minimum wage to their employees, restaurants only pay a small amount. The federally mandated minimum wage is $2.13 an hour for employees who receive tips as of January 1. The federal minimum wage for tipped employees is $2.13 per hour.

In some states like California, servers can earn up to $14 an hour. California, Oregon, and Washington are the only exceptions. In most of the country, tips still make up the majority of a server’s pay. 43 states allow servers to receive a wage that is below minimum wage.

“Tips can represent over 60% of a server’s total earnings”.

2. General etiquette & guidelines for tipping.

The general rule or etiquette of tipping is 15 percent when you feel the service was “average” and 20 percent when you felt the service was above average. You can tip more if you think the service was exceptional.

“Servers get paid according to a reward system. The person who receives the service pays the server based on the quality of the performance. The better the service, the higher the tip.

You may feel tempted to reduce the tip if you felt the service was poor. This will not solve the problem. Speak to someone in authority at the restaurant instead.

3. Who benefits from the tip.

In many restaurants, the server is not the only one who receives your tip. In many restaurants, and it is common for servers to split tips with other staff members, such as kitchen staff, bartenders, and dishwashers. Table Agent reports that more than 14 percent (or more) of full-service restaurants participate in this tipping pool practice.

4. Group tipping standards.

You should also be aware of any group tipping policies that restaurants may have.

Restaurants often add automatic gratuities when serving large groups. This is often the case for parties of six people or more. The restaurant will usually apply a gratuity of 18% in such situations.

Ask the restaurant about its policy if you’re planning to dine with a big group.

5. Calculating tips before or after tax.

In general, you calculate the tip you will leave for a server by dividing the total cost of the meal (excluding taxes) by the amount of the bill. If the meal costs $20, and the tax is $2, and then you’d tip $20.

If you’re feeling particularly generous, the tip can be calculated using the total cost of the bill, including tax.

“Servers must pay tax on the tip they receive and share it with other members of support staff.” The website explains that many people believe that tipping after tax is fair because it ensures that the server gets a bigger amount.

6. Tipping is not optional.

Remember that tipping is included in the cost of dining out. You should not consider tipping optional unless the waihi beach restaurant has told you in advance that it is included.

The service industry relies on tips for their livelihood. If you are planning to eat out, plan on tipping. Period.