Friday, July 3, 2009


My employees make 50% commission. For 5 service providers, they were tipped $200.00 on credit cards yesterday. Do you have any discussion on your blog as to whether or not I can legally charge them a fee for charged tips. I am thinking of going to no charged tips if I cannot pass a small fee on to them.


Paula, thank you for your question. Tips and credit card fee’s are a sticky situation for salon owners and I understand your frustration. I have posted many articles on our blog regarding this issue.

To answer your question: unfortunately you cannot charge the employees for the tips that are run through the credit card machine. This is a business expense of the owner and there is no way around this unless you go to no tipping with credit cards.

I hope this helps and best of luck!

Larry Kopsa CPA