Majority of Canadians ready to abolish tipping culture
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Canadians have becoming increasingly weary of tipping, according to a new study, with a growing number ready to get rid of the gratuities entirely.
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More than two-thirds (67%) of Canadians want to abolish tipping culture altogether, according to the survey of 1,545 Canadians between Feb. 19 and 23, 2006 and commissioned by H&R Block Canada.
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However, the overwhelming majority (93%) of respondents are feeling the frustrations over a number of things including digital tip prompts, particularly in situations where little to no service is even provided such as fast-food counters, coffee shops, convenience stores and, arguably most irksome, self-serve kiosks.
The increase in suggested percentages as well as how gratuities are taxed is also causing irritation and confusion.
Resent and avoid
Canadians’ increasing resentment has prompted 41% of customers to boycott some brands and avoid certain businesses where they aren’t confident enough to simply bypass a tip prompt.
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How taxing tips has evolved
The rise of point-of-sale systems has also shifted how tips are treated for tax purposes, something many Canadians probably don’t realize, H&R Block said.
“In years past, it may be that you left some cash on the table for your server at the end of your meal, and that server had to claim their tips voluntarily on their tax returns,” H&R Block tax expert Yannick Lemay said in a statement.
“Today, when you pay for your meal, or various other services, electronically and add a tip, there are instances where tips are treated as income by the employer and taxed as such — meaning, income tax on tips might be deducted by the employer before employees receive it as part of their paycheque,” he explained.
“This can cause all sorts of confusion come tax time.”
Despite the frustrations of tipping prompts as a whole, 88% of Canadians agreed that the culture has become a means for employers to pay their staff less.
But 91% of respondents don’t want to pay for wage subsidies and said that Canada should cover their employees’ full wages without relying on gratuities.
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