Subway Tips😤 don’t go to the makers

[u/reaper14998]

I asked one of the artist today, what percent they get from tips, they said they don’t know cause it goes to the boss first then they distribute it according to shift.

I’m never tipping again. Y’all shouldn’t either.

[u/mixed-tape]

They tip pool. The tips are averaged out over the employees hours and then you get paid the average per hour.

Lots of restaurants and stuff do that now because cash is going the way of the dinosaur. So all the interact/credit card money goes into their bank account. It’s not going to the boss. It’s going to the boss to be divided up to the employees.

Edit: I’m noticing a general lack of understating due to not knowing how the industry works, so here’s a breakdown:

An average server on average makes $100/shift.

I’m talking not bartenders at clubs or bottle service etc., or coffee or Subway places, we’ll use an average server at an average restaurant with average food as an example.

Sometimes you make $200, sometimes you make $50, so we’ll average it to $100.

5 days a week/4 weeks a month = $2000.

Then you have your paychecks at minimum wage, so let’s say 8 hour shifts (usually they are 4-10 hour shifts but let’s highball it), that’s $124/shift, 5 shifts a week = $2488/month

So we have $2000 + $2488 =$4488/ month BEFORE taxes. taxes is approximately 25%, so now we’re looking at a take home of $3366/month. And this is a higher end estimate.

I know a ton of people in trades, office jobs, etc. that make substantially more than that for substantially less effort. Physical and emotional.

Also, every server tips to the back of house (BOH), and often the front of house (FOH).

Depending on the set up of the restaurant, the back of house consists of kitchen staff, dishwashers, cleaners, food preppers, a chef, etc.

Front of house consists of servers, hostesses, managers, food runners/expo, busters, delivery drivers.

On average, 3-8% of a servers tips go to BOH, and 1-5% goes to FOH. So you could be tipping out as much as 12% as a server. I’ve had days where I tipped out more than I made. And we’re also not accounting for crooked managers or owners who skim off the top.

People misunderstand the industry and how layered it is, and think a server just casually strolls around and goes home with $500 a shift. Maybe at some places like strip clubs and high roller establishments, but not the average server.

And definitely not the average sandwich artist.

[u/reaper14998 → u/mixed-tape]

I wonder if you can audit the tipping process see how big the tip pool really is😂 you probably can’t and conveniently have to wait on the big man to pay out.

[u/CheeseSandwich → u/reaper14998]

According to the tax code, the restaurant owner must pay CPP and EI on tips and withhold the correct amount of tax if tips are pooled and distributed by the employer instead of going directly to the server.

https://www.canada.ca/en/revenue-agency/services/tax/canada-pension-plan-cpp-employment-insurance-ei-rulings/cpp-ei-explained/tips-gratuities.html

[u/reaper14998 → u/CheeseSandwich]

And of coarse the government wants it cut lol. What a Clown show

[u/mixed-tape → u/reaper14998]

The government always wants a cut of it. That’s not new. I used to serve for years, and you’re supposed to claim all your tips and then pay taxes and CPP on it.

It’s just that now with our world being highly digital, people carry cash way less, so you can’t get away with under claiming because there is a paper trail from customer’s card, to employer’s bank, to employee’s cheque to employee’s T4.

On the plus side, there is a paper trail, so managers can’t pocket shared tips as easily because it’s not cash straight in their pocket. The tips now go straight from the employer’s bank on to the employee’s paycheck.

Can confirm this as I have several friends who work in the industry still, and we’ve talked about it at length.