On 9/14/2013 4:38 PM, Dave Smith wrote:

>
> I would be curious to see the calculation that would lead an employer to
> have to increase menu prices by 20% in order to pay their staff the same
> money they are now making with tips that run around 15%.

Right, I'd guess 25% or more. The employer has to pa SS tax on those
wages, it will affect his rate on Workman's Comp. insurance. will affect
some other taxes too. Sales tax has to be paid by the customer making
that $1 tip a cost of perhaps $1.07 on the total

On a corporate level, it would reduce profits as a percentage. Income of
gross sales shows a 15% increase but profit as a percentage went down.
That does not sit well with the big chains and their bankers.

It seems so easy but has many repurcussions.