Las Vegas Restaurants Prepare for Tip Changes - 8 News NOW

Las Vegas Restaurants Prepare for Tip Changes

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LAS VEGAS - Eating out with friends will no longer cost you an automatic 18 percent tip. The Internal Revenue Service is regulating tips charged to groups of eight and more, and many servers are not happy about it.

Some are still trying to figure out how much the change will cost them. The new regulation eliminates an automatic 18 percent gratuity on large groups, although restaurants can still suggest it.

Any tips on large parties will go directly into the server's check and can be taxed as regular wages. How much a server earns after the change varies, depending on the restaurant.

For example, waiters and waitresses at the Peppermill near Las Vegas Boulevard and Convention Center Drive have to share their tips with the bartenders and bus boys.

If a party orders an alcoholic beverage, the bartender gets 15 percent of the server's tips. Busboys get 20 percent. The server gets the rest.

Angela Manos has been a waitress at the Peppermill for 18 years. She says not being able to count on that automatic 18-percent gratuity will definitely hurt her pocket.

"I live on my tips. I don't actually make a paycheck. I made anywhere between fifty dollars and one hundred dollars every two weeks, so if I don't make my tips, I don't make any money," she said.

"We've been preparing as the year, the first of the year, was coming along," said Peppermill manager Beau Orth. "We just haven't figured out what exactly we're going to do to make it fair for our customers as well as our employees."

The Peppermill, like many other restaurants in the valley, removed the automatic gratuity from its menu. Peppermill workers are also stamping bills to ensure their customers are aware a tip has not been added to their checks.

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