Tipflation, the newest concern regarding gratuity. With the growth of digital payment methods in restaurants and stores, there has been an overall increase in requested tip amounts nationwide.
As 61% of consumers feel the gesture has become over-demanded, tipping has become no longer just a reward for good service. Yet, one woman believes she’s discovered a way to avoid the costly provided percentage tip options on checkout tablets.
“Thanks for the tip,” viewers of her clip joked.
Posted this month, influencer Alex Newnam (@alex_newnam) turned to TikTok to illustrate her new hack.
Amassing more than 293,500 views and 4669 likes, the Kentucky native shares the 28-second clip. “I’m gonna teach you a trick,” Newnam begins her segment.
But while many viewers appreciate the new-found tipping procedure, others question its accuracy.
A trick for leaving the right tip
Sitting at her dinner table, Newnam shares with viewers that next time they go out for a meal, they refrain from pulling out a calculator. Rather than crunching numbers awkwardly or blindly agreeing to a pre-curated tip, Newman believes she has just the solution.
Newnam holds the receipt next to her face and excitedly looks toward the camera.
“To get a 20% tip,” Newnam explains. “All you need to do is take this decimal point and move it one place to the left.”
With glitter pink nails, Newnam gives a live demonstration. She points to the total on her receipt, reading “$64.93,” and uses her pointer finger to illustrate the moving of the decimal to the left. Now between the tens and ones place, this small maneuver will create 10% of the original price.
“You’re looking at approximately $6.50. That’s 10%. To make it a 20% tip, double it. So you’d be leaving a $13 tip,” Newnam says.
And it’s just that simple. By doubling the number provided once the decimal is moved, the new amount averages to exactly 20%. In accordance with around 62% of the American population, this is about the perfect amount to tip after receiving great service.
“All you gotta do is move that decimal over and double it,” Newnam summarizes.
Urging that you’ll never need a calculator at the table again, Newman acknowledges her expected praise from viewers and concludes her video. But while Newnam is correct with her seemingly basic math, there was just one issue. And commenters were quick to respond.
What’s the issue?
If you look closely at the video, you’ll see Newnam curates her trick based around the number provided by the restaurant as the “total.” This means the cost of the food including the price of tax, which when calculated averages out to more than 20% in relation to food and service prices alone.
“But you are tipping on tax too with that method,” one viewer shared.
“Why would you tip on the tax?” Another asked.
And the list continues. Many viewers began to banter back-and-forth, arguing the correct ways to calculate the tip.
“Don’t tip off the total as that includes tax. You tip off the subtotal,” one commenter shared.
“Tip the sub-total, not the total,” another chimed in.
Viewers grew irritated to see Newnam suggesting a tactic which inevitably elicits higher costs, with many claiming her to be incorrect overall. However, one viewer shared a good point.
What is correct?
“But then they’ll get less because they get taxed on their tips,” the viewer shared.
And this viewer is correct. Both cash and non-cash tips received by service employees are considered income and subject to federal income tax, the IRS states.
To avoid such confusion, viewers began to share their own personal tricks and tips to the tipping process. With one main idea summarizing their similar perspectives.
“I tip on how good my service was. Not just the price,” a viewer shared.
As tipping costs continue to be on the rise with the increase of digital checkout mechanisms, it’s always safe to tip based on the efforts of the server as a sign of gratitude for their endeavors.
So whether you believe that tipping should be strictly above 20% or below it, Newnam’s hack still stands as a mathematically correct way to quickly calculate percentages.
The Daily Dot reached out to Alex Newnam (@alex_newnam) via TikTok direct message for comment.
@alex_newnam Taking y’all back to school ✏️🍴💰 #tiptrick #resturant #money #math #tip #dinner #check #bill ♬ original sound – Alex Newnam
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