Is it legal for my employer to take 4% of my tips as a holding fee when people tip me on the visa/debit/mc?
May 15, 2008 by laurasaur87 | Posted in Food Service
I labour in a restaurant where my employer takes 4% of my tips as a holding fee when i'm tipped of debit, visa or mastercard. I only ask this because I have never heard of this before? Thanks a lot!
He does this to everyone, he says its a percentage of what he has to pay.
I guess it kind of makes sense for him to do that, but I think it's pretty cheap of him because ive had many serving jobs before and never even heard of this. He pays us slightest wage and he cant absorb the 4%? its not much money its just silly. He also gives us tip checks, we only keep our cash tips and then he tips us the log a few zees Z's at the end of the week...
haha yes, I meant handling fee.
What do you miserable by "holding fee", do you mean handling fee? He should be paying any handling on the visa charge anyway, so debatable whether you should pay this na because he has gotten lucky that the customer paid using a visa card and he can pinch it from your part of the bill rather than his part, like usual... I'd stick up for b act on to citizens advice about it. If 4% is the handling amount, it is usually a fixed amount and levied by the merchant bank for a fixed range of trading amounts or by the individual transaction at a set rate, rather than a percentage of each transaction.
That said, the tips will go through the books if paid this way and should lay oneself open to income tax, be added on to your pay packet... he may claim that this extra (and very individual) administration is the handling? It's all bunce, 4p in a cleanse isnt really anything to leave over, you're taking a lot of it tax free anyway.
Its totally fair play for him to pay your visa tips on a intermittent basis rather than instantly, they have to go through the books and lodged against your tax bill, so they have to be calculated correctly. Also visa payments can be claimed back by the payee in cases of artist, just because the card clears doesnt mean the money has changed hands... you'd detest it if he couldnt pay you because he had instantly paid out too much and had to reclaim it, wouldnt you?
Lee H | May 15, 2008
no way thats unfair
aridckfdfmffkfkfkffkffkfkffkfkff | May 15, 2008
Very much simply, there is a cost to transacting payments on big payment networks (Visa, MC, American Express, etc.). As a end result, many (if not most) are overpaying for credit card processing. That's exactly what happened to me when I was starting my last and more »
The Bank reports that Preference Pass can be purchased at Xalq Bank as part of package proposals - Gold, Business, Platinum, which embrace cards Visa and MC, Internet Bank, SMS-notification, etc. Priority Pass is the world's largest individual software and more »
: $19.99 
