vpFREE2 Forums

Do cocktail waitresses have to pay for their drinks?

The casino keeps track of the drink's they serve, and a certain amount is listed as "income" on their W-2's that go to the IRS. The IRS thought they were reporting tips less than they really got, so it goes this way. They don't have to pay real money, but the IRS assumes they make a certain amount for each drink and that's added to their "income."

Ned C.
The Wild Joker

···

Mopar Man <moparman4@cox.net> wrote:
When they are working the floor they do not pay for the drinks although the casino tracks how many beverages/how much in beverages is served by each waitress. When they are working in a lounge, the customer is buying the drinks and in many casinos the waitress has to provide the seed money in her "bank" herself.
  ----- Original Message -----
  From: mufflerr
  To: vpFREE@yahoogroups.com
  Sent: Monday, May 16, 2005 11:25 AM
  Subject: [vpFREE] Do cocktail waitresses have to pay for their drinks?

  Do cocktail waitresses have to pay for their drinks in Las Vegas, or do
  the casinos give them away to promote gambling in their establishment?

  I read somewhere that cocktail waitresses have to pay $0.75 per drink,
  and hence they are only making a profit when the tip is $1 or more,
  however, I don't think this is true.

  Can anyone confirm this myth?

  Thanks,

  The Muff

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[Non-text portions of this message have been removed]

Wild Joker and Mopar Man,

Thanks for the information.

Just curious...

How much does the IRS recommend that each Las Vegas casino add
as "income" per drink on each cocktail waitresses' W2 (when they are
working the floor)?

I usually tip her $1 for a drink (water, beer, soda, juice or coffee).

Is that considered the recommended amount today?

I.E. Are they making out well financially if everyone tips $1 per
drink?

Thanks,

The Muff

I usually tip a cocktail--- In vpFREE@yahoogroups.com, The Wild Joker
<jokerswild1203@y...> wrote:

   The casino keeps track of the drink's they serve, and a certain

amount is listed as "income" on their W-2's that go to the IRS. The
IRS thought they were reporting tips less than they really got, so it
goes this way. They don't have to pay real money, but the IRS assumes
they make a certain amount for each drink and that's added to
their "income."

Ned C.
The Wild Joker

Mopar Man <moparman4@c...> wrote:
When they are working the floor they do not pay for the drinks

although the casino tracks how many beverages/how much in beverages
is served by each waitress. When they are working in a lounge, the
customer is buying the drinks and in many casinos the waitress has to
provide the seed money in her "bank" herself.

  From: mufflerr
  To: vpFREE@yahoogroups.com
  Sent: Monday, May 16, 2005 11:25 AM
  Subject: [vpFREE] Do cocktail waitresses have to pay for their

drinks?

  Do cocktail waitresses have to pay for their drinks in Las Vegas,

or do

  the casinos give them away to promote gambling in their

establishment?

  I read somewhere that cocktail waitresses have to pay $0.75 per

drink,

  and hence they are only making a profit when the tip is $1 or

more,

···

  ----- Original Message -----
  however, I don't think this is true.

  Can anyone confirm this myth?

  Thanks,

  The Muff

  vpFREE Links: http://members.cox.net/vpfree/Links.htm

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[Non-text portions of this message have been removed]

You might want to visit the Cocktail Doll Web site at
http://www.cocktaildoll.com. She has
tons and tons of great info on waitressing in Vegas. Her stories
about moronic customers are
great.

···

____________________________
Five Hundy by Midnight
The Original Las Vegas Podcast
www.fivehundybymidnight.com

It's called "tip compliance" and the IRS offers this only to casinos in
Nevada. If a waitress/bartender agrees to be on tip compliance then a
specific amount of income is added to the employee's income as tip income.
In some cases it is an amount per drink served and in some cases it is an
amount per hour. It is an amount that has been agreed upon between the
casino and the IRS. In return for the employee agreeing to be on tip
compliance the IRS agrees not to audit the employee's tax return based on
tip income. For example, the employee could make $50,000 in tip income but
would only be required to report the tip compliance amount, let's say
$20,000, which shows up on their W2. They would be legally under reporting
their income by $30,000. This is one of the very few areas where the IRS
allows someone to legally under report their income on their tax return.

The IRS went to this system many years ago because they felt people in the
casino beverage industry were grossly under reporting their tip income.
Revenue for the IRS increased dramatically after the changes yet employees
were still under reporting their tip income so it was a win-win situation.
The negotiated rates for many casinos were up for evaluation right around
when 9/11 happened. In some cases the IRS wanted to double the amount people
had to report in tip compliance. But in the aftermath they agreed to let the
current amounts stand for the next few years. I suspect that now that
business is booming in LV again that the IRS will be back to re-visit this
area in the not too distant future.

···

-----Original Message-----
From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On Behalf Of
mufflerr
Sent: Monday, May 16, 2005 3:08 PM
To: vpFREE@yahoogroups.com
Subject: [vpFREE] Re: Do cocktail waitresses have to pay for their drinks?

Wild Joker and Mopar Man,

Thanks for the information.

Just curious...

How much does the IRS recommend that each Las Vegas casino add
as "income" per drink on each cocktail waitresses' W2 (when they are
working the floor)?

I usually tip her $1 for a drink (water, beer, soda, juice or coffee).

Is that considered the recommended amount today?

I.E. Are they making out well financially if everyone tips $1 per
drink?

Thanks,

The Muff

I usually tip a cocktail--- In vpFREE@yahoogroups.com, The Wild Joker
<jokerswild1203@y...> wrote:

   The casino keeps track of the drink's they serve, and a certain

amount is listed as "income" on their W-2's that go to the IRS. The
IRS thought they were reporting tips less than they really got, so it
goes this way. They don't have to pay real money, but the IRS assumes
they make a certain amount for each drink and that's added to
their "income."

Ned C.
The Wild Joker

Mopar Man <moparman4@c...> wrote:
When they are working the floor they do not pay for the drinks

although the casino tracks how many beverages/how much in beverages
is served by each waitress. When they are working in a lounge, the
customer is buying the drinks and in many casinos the waitress has to
provide the seed money in her "bank" herself.

  ----- Original Message -----
  From: mufflerr
  To: vpFREE@yahoogroups.com
  Sent: Monday, May 16, 2005 11:25 AM
  Subject: [vpFREE] Do cocktail waitresses have to pay for their

drinks?

  Do cocktail waitresses have to pay for their drinks in Las Vegas,

or do

  the casinos give them away to promote gambling in their

establishment?

  I read somewhere that cocktail waitresses have to pay $0.75 per

drink,

  and hence they are only making a profit when the tip is $1 or

more,

  however, I don't think this is true.

  Can anyone confirm this myth?

  Thanks,

  The Muff

  vpFREE Links: http://members.cox.net/vpfree/Links.htm

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[Non-text portions of this message have been removed]

See Randy's answer on tip compliance. I can add that the rate agreed upon between the casino and the IRS changes based on the shift and the area of the floor that the waitress works.

As far as the recommended amount, I would say it's $5 or more since my wife is a cocktail waitress! ;>)

Alot of people think that when the casino is very busy the waitresses are making more money. The fact is that people seem to get cranky and cheap when the place is busy. Particularly if its one of those days when everyone is there to get a cheesy mug or plastic sunglasses because of a slot club giveaway - I think those people are generally cheaper tippers anyway.

···

----- Original Message -----
  From: mufflerr
  To: vpFREE@yahoogroups.com
  Sent: Monday, May 16, 2005 3:08 PM
  Subject: [vpFREE] Re: Do cocktail waitresses have to pay for their drinks?

  Wild Joker and Mopar Man,

  Thanks for the information.

  Just curious...

  How much does the IRS recommend that each Las Vegas casino add
  as "income" per drink on each cocktail waitresses' W2 (when they are
  working the floor)?

  I usually tip her $1 for a drink (water, beer, soda, juice or coffee).

  Is that considered the recommended amount today?

  I.E. Are they making out well financially if everyone tips $1 per
  drink?

  Thanks,

  The Muff

  I usually tip a cocktail--- In vpFREE@yahoogroups.com, The Wild Joker
  <jokerswild1203@y...> wrote:
  > The casino keeps track of the drink's they serve, and a certain
  amount is listed as "income" on their W-2's that go to the IRS. The
  IRS thought they were reporting tips less than they really got, so it
  goes this way. They don't have to pay real money, but the IRS assumes
  they make a certain amount for each drink and that's added to
  their "income."
  >
  > Ned C.
  > The Wild Joker
  >
  > Mopar Man <moparman4@c...> wrote:
  > When they are working the floor they do not pay for the drinks
  although the casino tracks how many beverages/how much in beverages
  is served by each waitress. When they are working in a lounge, the
  customer is buying the drinks and in many casinos the waitress has to
  provide the seed money in her "bank" herself.
  > ----- Original Message -----
  > From: mufflerr
  > To: vpFREE@yahoogroups.com
  > Sent: Monday, May 16, 2005 11:25 AM
  > Subject: [vpFREE] Do cocktail waitresses have to pay for their
  drinks?
  >
  >
  > Do cocktail waitresses have to pay for their drinks in Las Vegas,
  or do
  > the casinos give them away to promote gambling in their
  establishment?
  >
  > I read somewhere that cocktail waitresses have to pay $0.75 per
  drink,
  > and hence they are only making a profit when the tip is $1 or
  more,
  > however, I don't think this is true.
  >
  > Can anyone confirm this myth?
  >
  > Thanks,
  >
  > The Muff
  >
  >
  >
  >
  > vpFREE Links: http://members.cox.net/vpfree/Links.htm
  >
  >
  >
  >
  >
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[Non-text portions of this message have been removed]

This is correct although I believe the method used is the same for an entire
casino. i.e. either all employees are charged an hourly rate or they are all
charged by the drink.

···

-----Original Message-----
From: vpFREE@yahoogroups.com [mailto:vpF…@…com] On Behalf Of
Mopar Man
Sent: Monday, May 16, 2005 4:50 PM
To: vpFREE@yahoogroups.com
Subject: Re: [vpFREE] Re: Do cocktail waitresses have to pay for their
drinks?

* See Randy's answer on tip compliance. I can add that the rate agreed
upon between the casino and the IRS changes based on the shift and the area
of the floor that the waitress works.

[Non-text portions of this message have been removed]

Hello Mopar Man,

I used to tip the cocktail waitresses one 50 cent piece per drink and
if they were very nice I would occasionally tip two 50 cent pieces
per drink.

My thought process was that psychologically, they would think one or
two 50 cent pieces were better then small change or a dollar, because
they were larger and heavier.

Would I be considered a tight fisted Midwesterner?

Thanks,

The Muff

nice I --- In vpFREE@yahoogroups.com, "Mopar Man" <moparman4@c...>
wrote:

See Randy's answer on tip compliance. I can add that the rate

agreed upon between the casino and the IRS changes based on the shift
and the area of the floor that the waitress works.

As far as the recommended amount, I would say it's $5 or more since

my wife is a cocktail waitress! ;>)

Alot of people think that when the casino is very busy the

waitresses are making more money. The fact is that people seem to get
cranky and cheap when the place is busy. Particularly if its one of
those days when everyone is there to get a cheesy mug or plastic
sunglasses because of a slot club giveaway - I think those people are
generally cheaper tippers anyway.

  From: mufflerr
  To: vpFREE@yahoogroups.com
  Sent: Monday, May 16, 2005 3:08 PM
  Subject: [vpFREE] Re: Do cocktail waitresses have to pay for

their drinks?

  Wild Joker and Mopar Man,

  Thanks for the information.

  Just curious...

  How much does the IRS recommend that each Las Vegas casino add
  as "income" per drink on each cocktail waitresses' W2 (when they

are

  working the floor)?

  I usually tip her $1 for a drink (water, beer, soda, juice or

coffee).

  Is that considered the recommended amount today?

  I.E. Are they making out well financially if everyone tips $1 per
  drink?

  Thanks,

  The Muff

  I usually tip a cocktail--- In vpFREE@yahoogroups.com, The Wild

Joker

  <jokerswild1203@y...> wrote:
  > The casino keeps track of the drink's they serve, and a

certain

  amount is listed as "income" on their W-2's that go to the IRS.

The

  IRS thought they were reporting tips less than they really got,

so it

  goes this way. They don't have to pay real money, but the IRS

assumes

  they make a certain amount for each drink and that's added to
  their "income."
  >
  > Ned C.
  > The Wild Joker
  >
  > Mopar Man <moparman4@c...> wrote:
  > When they are working the floor they do not pay for the drinks
  although the casino tracks how many beverages/how much in

beverages

  is served by each waitress. When they are working in a lounge,

the

  customer is buying the drinks and in many casinos the waitress

has to

  provide the seed money in her "bank" herself.
  > From: mufflerr
  > To: vpFREE@yahoogroups.com
  > Sent: Monday, May 16, 2005 11:25 AM
  > Subject: [vpFREE] Do cocktail waitresses have to pay for

their

  drinks?
  >
  >
  > Do cocktail waitresses have to pay for their drinks in Las

Vegas,

  or do
  > the casinos give them away to promote gambling in their
  establishment?
  >
  > I read somewhere that cocktail waitresses have to pay $0.75

per

···

  ----- Original Message -----
  > ----- Original Message -----
  drink,
  > and hence they are only making a profit when the tip is $1 or
  more,
  > however, I don't think this is true.
  >
  > Can anyone confirm this myth?
  >
  > Thanks,
  >
  > The Muff
  >
  >
  >
  >
  > vpFREE Links: http://members.cox.net/vpfree/Links.htm
  >
  >
  >
  >
  >
  > ----------------------------------------------------------------

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My wife is sitting right next to me and I read your question to her. Her response is that your server will remember you because you're only tipping 50 cents not because it was a great tip.

···

----- Original Message -----
  From: mufflerr
  To: vpFREE@yahoogroups.com
  Sent: Tuesday, May 17, 2005 7:46 AM
  Subject: [vpFREE] Re: Do cocktail waitresses have to pay for their drinks?

  Hello Mopar Man,

  I used to tip the cocktail waitresses one 50 cent piece per drink and
  if they were very nice I would occasionally tip two 50 cent pieces
  per drink.

  My thought process was that psychologically, they would think one or
  two 50 cent pieces were better then small change or a dollar, because
  they were larger and heavier.

  Would I be considered a tight fisted Midwesterner?

  Thanks,

  The Muff

  nice I --- In vpFREE@yahoogroups.com, "Mopar Man" <moparman4@c...>
  wrote:
  > See Randy's answer on tip compliance. I can add that the rate
  agreed upon between the casino and the IRS changes based on the shift
  and the area of the floor that the waitress works.
  >
  > As far as the recommended amount, I would say it's $5 or more since
  my wife is a cocktail waitress! ;>)
  >
  > Alot of people think that when the casino is very busy the
  waitresses are making more money. The fact is that people seem to get
  cranky and cheap when the place is busy. Particularly if its one of
  those days when everyone is there to get a cheesy mug or plastic
  sunglasses because of a slot club giveaway - I think those people are
  generally cheaper tippers anyway.
  > ----- Original Message -----
  > From: mufflerr
  > To: vpFREE@yahoogroups.com
  > Sent: Monday, May 16, 2005 3:08 PM
  > Subject: [vpFREE] Re: Do cocktail waitresses have to pay for
  their drinks?
  >
  >
  > Wild Joker and Mopar Man,
  >
  > Thanks for the information.
  >
  > Just curious...
  >
  > How much does the IRS recommend that each Las Vegas casino add
  > as "income" per drink on each cocktail waitresses' W2 (when they
  are
  > working the floor)?
  >
  > I usually tip her $1 for a drink (water, beer, soda, juice or
  coffee).
  >
  > Is that considered the recommended amount today?
  >
  > I.E. Are they making out well financially if everyone tips $1 per
  > drink?
  >
  > Thanks,
  >
  > The Muff
  >
  > I usually tip a cocktail--- In vpFREE@yahoogroups.com, The Wild
  Joker
  > <jokerswild1203@y...> wrote:
  > > The casino keeps track of the drink's they serve, and a
  certain
  > amount is listed as "income" on their W-2's that go to the IRS.
  The
  > IRS thought they were reporting tips less than they really got,
  so it
  > goes this way. They don't have to pay real money, but the IRS
  assumes
  > they make a certain amount for each drink and that's added to
  > their "income."
  > >
  > > Ned C.
  > > The Wild Joker
  > >
  > > Mopar Man <moparman4@c...> wrote:
  > > When they are working the floor they do not pay for the drinks
  > although the casino tracks how many beverages/how much in
  beverages
  > is served by each waitress. When they are working in a lounge,
  the
  > customer is buying the drinks and in many casinos the waitress
  has to
  > provide the seed money in her "bank" herself.
  > > ----- Original Message -----
  > > From: mufflerr
  > > To: vpFREE@yahoogroups.com
  > > Sent: Monday, May 16, 2005 11:25 AM
  > > Subject: [vpFREE] Do cocktail waitresses have to pay for
  their
  > drinks?
  > >
  > >
  > > Do cocktail waitresses have to pay for their drinks in Las
  Vegas,
  > or do
  > > the casinos give them away to promote gambling in their
  > establishment?
  > >
  > > I read somewhere that cocktail waitresses have to pay $0.75
  per
  > drink,
  > > and hence they are only making a profit when the tip is $1 or
  > more,
  > > however, I don't think this is true.
  > >
  > > Can anyone confirm this myth?
  > >
  > > Thanks,
  > >
  > > The Muff
  > >
  > >
  > >
  > >
  > > vpFREE Links: http://members.cox.net/vpfree/Links.htm
  > >
  > >
  > >
  > >
  > >
  > > ----------------------------------------------------------------
  ----
  > ----------
  > > Yahoo! Groups Links
  > >
  > > a.. To visit your group on the web, go to:
  > > http://groups.yahoo.com/group/vpFREE/
  > >
  > > b.. To unsubscribe from this group, send an email to:
  > > vpFREE-unsubscribe@yahoogroups.com
  > >
  > > c.. Your use of Yahoo! Groups is subject to the Yahoo!
  Terms of
  > Service.
  > >
  > >
  > >
  > > [Non-text portions of this message have been removed]
  > >
  > >
  > >
  > > vpFREE Links: http://members.cox.net/vpfree/Links.htm
  > >
  > >
  > >
  > >
  > >
  > > ---------------------------------
  > > Yahoo! Groups Links
  > >
  > > To visit your group on the web, go to:
  > > http://groups.yahoo.com/group/vpFREE/
  > >
  > > To unsubscribe from this group, send an email to:
  > > vpFREE-unsubscribe@yahoogroups.com
  > >
  > > Your use of Yahoo! Groups is subject to the Yahoo! Terms of
  > Service.
  > >
  > >
  > >
  > > ---------------------------------
  > > Yahoo! Mail
  > > Stay connected, organized, and protected. Take the tour
  > >
  > > [Non-text portions of this message have been removed]
  >
  >
  >
  >
  > vpFREE Links: http://members.cox.net/vpfree/Links.htm
  >
  >
  >
  >
  >
  > --------------------------------------------------------------------
  ----------
  > Yahoo! Groups Links
  >
  > a.. To visit your group on the web, go to:
  > http://groups.yahoo.com/group/vpFREE/
  >
  > b.. To unsubscribe from this group, send an email to:
  > vpFREE-unsubscribe@yahoogroups.com
  >
  > c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms of
  Service.
  >
  >
  >
  > [Non-text portions of this message have been removed]

  vpFREE Links: http://members.cox.net/vpfree/Links.htm

------------------------------------------------------------------------------
  Yahoo! Groups Links

    a.. To visit your group on the web, go to:
    http://groups.yahoo.com/group/vpFREE/
      
    b.. To unsubscribe from this group, send an email to:
    vpFREE-unsubscribe@yahoogroups.com
      
    c.. Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.

[Non-text portions of this message have been removed]