Tipping is a contentious topic in the United States. Some will always tip the standard 15-20%. Others feel that’s too much and their tip will vary based on the quality of service. Some don’t tip at all, and some think we should abolish the practice altogether.
One customer was prepared to tip more than 20% for the excellent service she received. However, she noticed something was off with the suggested tip amounts on her bill.
“Ooh, they being sneaky at the restaurants nowadays, y’all,” MandaPanda111 (@manda__panda_) begins in a TikTok that accrued 3 million views. “Look at my bill. It’s $47.35.”
“When in the world did 20% become $12 on $47?” she asks, referring to the suggested tip amount on her bill that says 20% would be $12.70 for a total of $60.05. “Everybody knows to get 20%, you double the first two numbers, which would’ve put me around $9.50.”
Indeed, 20% of $47.35 is $9.47, which Manda indicated in pen on her bill.
“So you’re telling me I was about to pay $3 more in a tip? For what?” she questions.
She notes that she tipped the server more than 20% because she “deserved it,” but she told restaurants not to be sneaky about adding to tip amounts.
Suggested tipping or something more?
In the comments section, some viewers thanked Manda for the tip as they had never thought to confirm the percentages themselves. Others said they always check and had noticed restaurants overestimating. Some just took the opportunity to bash tipping culture and call for the abolition of tipping. Then there were those who claimed the restaurant was engaging in an illegal practice.
“They are including the taxes in the tip percentages which is in fact fraud,” one viewer said.
User Spunky wrote, “That’s illegal. They’re calculating the tip from the total after taxes, but it’s supposed to be on the food & beverage total. There’s no reason to tip on tax!”
@manda__panda_ Sneaky sneaky. Good thing i know simple math. #waitress #table #restaurant #tip #money #bill #sneaky #tips #work #percent #wrong #bills #money #foodtiktok #4 #l #pizza #louisiana ♬ original sound – MandaPanda111
Is it illegal to calculate the suggested tip amount based on the post-tax bill total?
According to Google Gemini, there is no law in the U.S. that requires restaurants to calculate suggested tips based on the pre-tax bill amount.
In an article in the LA Times investigating whether suggested gratuity amounts are calculated pre- or post-tax, the author found that the restaurant owner they spoke to didn’t know that his point of sale (POS) machine was giving suggestions based on post-tax totals. This is similar to the sentiment expressed in Manda’s comments section that servers are not responsible for the suggested tip amounts.
The author found that either the restaurant or the card processor is responsible for the setting on POS systems that calculates the suggested gratuity based on post-tax totals.
Tom Konz, head of strategy and marketing at Royal Bank of Scotland, one of the largest card processors in the country, said, “Calculating tips on an after-tax basis is pretty much an industry standard.” He explained that when a merchant submits a credit card for processing, the card company has to preauthorize the full amount of the transaction before the customer signs the receipt.
This means the preauthorized transaction will typically include all taxes due, plus a little wiggle room for a tip.”
When asked if the machines could be programmed to calculate tip amounts on a pre-tax basis, Konz said it’s possible, but there is no demand as merchants and customers haven’t made a fuss.
So POS machines calculate suggested gratuity on the post-tax total. Should I tip that amount?
How much you tip is always up to you. However, if you’re concerned about etiquette, experts generally agree that you should tip on the pre-tax total of your bill.
That still doesn’t explain the tipping math on Amanda’s bill
While commenters said the discrepancy was due to the restaurant using the post-tax total to calculate the tip, the bill itself states, “Tip percentages are based on the check price before discounts and taxes.”
If that’s the case, it’s unclear where the extra $3.23 for tipping in the restaurant’s calculation came from.
The Mary Sue contacted Manda via TikTok comment and direct message.
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