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Tips?

I have been working at a Chiro office for the last year as a CA but just recently started doing massage 2 days a week as well. I know it's more likely that you'll get a tip working at a Spa than in a medical setting, but I was just wondering if any of you get that now and then and how you're office handles that. Doesn't the practice have to have something set up for tax purposes?

Replies to This Discussion

Permalink Reply by Jeff Sims on August 4, 2011 at 1:07am

If it is cash that is put in your hand, then it is up to you to include it on you tax return. If the office collects it, it will likely be included on your 1099, or W-2 automatically, as part of your income, especially if it is charged on a bank/credit card. I hope this helps.

Permalink Reply by Teri Lange on August 4, 2011 at 6:18am

If you are working as an Employee, then yes, I believe your employer would require that you complete and submit a Tip Report every month. This link to the IRS might be helpful. However, if you are an Independent Contractor, then you are required (by the IRS) to report your tip income in your Business Income Tax Form.

Permalink Reply by Trina Throckmorton on August 6, 2011 at 12:39pm

Ok. Thanks so much for the replies guys! Very helpful :) How often have you noticed you get tips in a chiro setting if ever?

Permalink Reply by Teri Lange on August 8, 2011 at 11:36am

I would say less than 50%. Unfortunately, because of the chiropractic setting as a medical facility versus a spa-ish type facility, gratuity is less likely. Some suggestions to possibly enhance receiving tips might be:

1. Edit your massage menu or brochure -- add an asterisk next to the heading Therapy Fees*, then at the bottom, it would say, *Menu price does not include gratuity. Industry standard for gratuity is 15-20%.

2. Decorate your massage room to have a more spa-ish feeling to it. You might add spa-ish touches like bamboo plants, a small fountain, etc.

Permalink Reply by Trina Throckmorton on August 8, 2011 at 7:56pm

Ok, ya I figured more spa setting type places would suggest more tipping. Thanks for the ideas :)