Gratuity, commonly known as a tip or service charge, is an additional payment given to service workers, especially in hospitality. It forms a crucial part of...
Gratuity, often called a tip, is an additional payment voluntarily given by a customer to a service worker, typically for good service, beyond the cost of goods or services.
Yes, in most jurisdictions, all forms of gratuity, including cash and non-cash tips, are considered taxable income for employees and must be reported to tax authorities.
Generally, no. Labor laws in many regions prohibit employers from keeping tips left for their employees. However, rules vary regarding tip pooling among staff.
A tip is a voluntary payment from a customer, while a service charge is a mandatory fee added by the establishment, often distributed among staff according to company policy.