How many of you withhold an amount from credit card tips?

[AMCharney]

We recently started withholding a low estimate (2.5%) of credit card tips to partially offset the CC processing cost.  I'm wondering how many users are doing that.  Assuming revenue of 750K annually with an 18% average tip level, the CC processing fee offset comes to about $3375 a year, so it's not necessarily an immaterial charge to profitability.

Thoughts anyone?

[JimmyD99]

Yep. 3%. Don't know people wouldn't. 

[Zerelda]

Most restaurants I've worked at do not.  So far, about 2 in 30 restaurants I've been at.  

[Billiards]

We bury the cost into our pricing. Heard to many customers complain about other places they will not go because the fee. I would rather have more customers than less.

[QsPub]

I would check with your accountant depending on your corporate structure.  In Colorado, if you charge your servers CC processing fees for TIPS,  then I believe you lose out on the credits you receive on IRS Form 8846, which could potentially be much higher.  For example, tips received was 300,000 for the year, the credit would be approximately 23,000 that is reported on Schedule K1.