Calculating Tip

Tax and Tip

to make up for the fact that servers are earning a reduced hourly wage rather than a standard minimum wage.
Minimum wage in Rhode Island is $13 - waitresses start at $8.70

​Why

Most hospitality industries expect a tip - people who work in a hotel, drivers, tour guides, servers, ect.

​When to Tip

Tipping

The STANDARD is 15%-20%
That means unless they do an awful job - you tip 15%-20%.
If they do an amazing job - tip more.

​For servers

How much to tip?

Percentage based - 7% in Rhode Island

A tax on products at the point of sale - collected by the seller and passed on to the govenment

​Sales Tax

Tax

​Calculating Tip and Tip

1. Turn the percent into a decimal by dividing it by 100.

2. Multiply the decimal by the total. This is the amount of tax/tip owed

3. To find the total money you need to pay, add the tip/tax and the total together.

​Example

At Pizza Hut, your bill was $15.97 plus tax. Give each tip amount shown.
15% tip: _______________
18% tip: _______________
20% tip: _______________

​Example

After finishing your shopping trip at Forever 21, the total came to $108. If there is a 5.25% sales tax, how much money will you pay in total?