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ArishMell · 70-79, M
Tips and overtime are two totally different things. The and should be replaced by or..
Tips should not be necessary and are voluntary; but are expressions of gratitude - indeed they also called gratuities. They may be a left-over from the days when waiting staff and the like were paid very badly even by the standards of their time. Nowadays tips are, or should be, no more than perks, although many hospitality-trade staff are on minimum-wage rates or little better.
By the time they are shared the individual income from them is probably very low, and the advent of paying by bank-card has probably made them even lower despite the soliciting on some systems used by restaurants. (Which I don't like - I do leave cash-tips tips in a pot on the counter but object to this artficial begging by machine.)
So really, the income from tips is so small, variable and difficult to quantify it is probably far more expensive to tax than would be worthwhile, as well as being rather mean.
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Whereas overtime is extra to the contracted hours and often paid at a higher rate than the stardard-hours rate - so naturally attracts the normal taxes.
That obviously varies between countries by their different fiscal systems, but in the UK consists of Income Tax and National Insurance, usually deducted and paid by the employer on the "Pay As You Earn" system. The minima on these ensure the lowest-paid do not pay Income Tax.
Tips should not be necessary and are voluntary; but are expressions of gratitude - indeed they also called gratuities. They may be a left-over from the days when waiting staff and the like were paid very badly even by the standards of their time. Nowadays tips are, or should be, no more than perks, although many hospitality-trade staff are on minimum-wage rates or little better.
By the time they are shared the individual income from them is probably very low, and the advent of paying by bank-card has probably made them even lower despite the soliciting on some systems used by restaurants. (Which I don't like - I do leave cash-tips tips in a pot on the counter but object to this artficial begging by machine.)
So really, the income from tips is so small, variable and difficult to quantify it is probably far more expensive to tax than would be worthwhile, as well as being rather mean.
...
Whereas overtime is extra to the contracted hours and often paid at a higher rate than the stardard-hours rate - so naturally attracts the normal taxes.
That obviously varies between countries by their different fiscal systems, but in the UK consists of Income Tax and National Insurance, usually deducted and paid by the employer on the "Pay As You Earn" system. The minima on these ensure the lowest-paid do not pay Income Tax.