Question

If you’re a server and someone pays in cash, what do you with that cash they gave you? Do you keep it? Give it to the bar? What do you do with it?

Answer 1

As a server in a restaurant, what you do with the cash given to you depends on the establishment's policies and procedures, as well as any local laws or regulations. Here's a general outline of what typically happens with cash payments:

1. Check for accuracy: When a customer pays in cash, the server should count the money to ensure that the amount given matches the total bill, including any change due.

2. Provide change (if necessary): If the customer gave more money than the total bill, the server will return the correct change to the customer.

3. Record the transaction: Many restaurants require servers to keep a record of cash transactions. This could be through a POS (Point of Sale) system or manually tallying the cash received during their shift.

4. Tip sharing or pooling: In some establishments, servers are required to share a portion of their tips with other staff members, such as bartenders, bussers, or hosts/hostesses. The percentage and distribution of tip sharing can vary depending on the restaurant's policy.

5. Cash out: At the end of their shift, servers usually "cash out," which involves reconciling their sales, tips, and any cash remaining in their possession. They might report their total tips earned to the management or enter it into the restaurant's system.

6. Taxes and reporting: In the United States, servers are required to report their tips as income for tax purposes. They should accurately report their tips to comply with tax regulations.

7. Deposits: The restaurant may require servers to make cash deposits at the end of their shifts to cover any shortages or to maintain a safe cash flow in the restaurant.

8. Handling tips for the bar: If customers leave tips specifically for the bar staff (e.g., for drinks at the bar), the server should hand over those tips to the bartenders.

Remember, each restaurant might have its specific policies and procedures for handling cash and tips, so it's crucial for servers to familiarize themselves with the rules of their workplace. Additionally, local labor laws may govern how tips are distributed and handled.