Crew incentives

[kazu]

5 minutes ago, ArizonatoFlorida said:

Could someone who’s been on a cruise lately please tell me the daily amount of the crew incentive? I think the last time we cruised, probably 2 years ago, it was $16/day for our veranda.  Thanks.

 

Here you go from the HAL site at the time:

 

[rucrazy]

On 9/7/2021 at 3:16 AM, Copper10-8 said:

I don't do "PC"

I prefer to do "respect and consideration"... the way I look at it those two pretty much cover PC

Edited September 8, 2021 by rucrazy

[chengkp75]

1 hour ago, RuthC said:

If HAL did add it to the price of the cruise, though, it would have to be more than $105/person/week for the crew to net the same amount. 
When the money is received as 'tips', 'gratuity', or by any other name except 'wages', there are taxes due. Tips are not taxable income to them. 

I see no reason for me to be paying more so their countries can collect more tax money. I want the crew to get what I give---be it as a daily charge, or any extra I give them. 

I know that in the Philippines, and I believe in Indonesia as well, if the money comes from the company, regardless of what it is called, it is taxable income.  The only money that is not considered taxable is if it is received directly from the customer.  So, the HSC, DSC, or crew incentive, has always been taxable in those countries at least.

[KirkNC]

1 hour ago, chengkp75 said:

I know that in the Philippines, and I believe in Indonesia as well, if the money comes from the company, regardless of what it is called, it is taxable income.  The only money that is not considered taxable is if it is received directly from the customer.  So, the HSC, DSC, or crew incentive, has always been taxable in those countries at least.

I would have thought so unless tax rules are significantly different there versus the US.

[kazu]

2 hours ago, chengkp75 said:

I know that in the Philippines, and I believe in Indonesia as well, if the money comes from the company, regardless of what it is called, it is taxable income.  The only money that is not considered taxable is if it is received directly from the customer.  So, the HSC, DSC, or crew incentive, has always been taxable in those countries at least.

 

I am sure i had read that the crew did not need to pay tax on the HSC/Crew Incentive.  I believe it was in a crew contract I once saw.  I wonder if there is some loop hole where in the employer states they are just facilitating collecting directly from the customer?

 

I’m no expert on Philippine income tax law, but if there is no benefit to the crew then it makes no sense to have it as a separate charge to me.  Why wouldn’t all the cruise lines roll it into the cruise price? 

[chengkp75]

8 minutes ago, kazu said:

I’m no expert on Philippine income tax law, but if there is no benefit to the crew then it makes no sense to have it as a separate charge to me.  Why wouldn’t all the cruise lines roll it into the cruise price? 

There's very rarely any benefit to the crew from what the company does.  It does not benefit the crew, but as I stated in my post above, it benefits the company.

[rkacruiser]

6 hours ago, chengkp75 said:

The only money that is not considered taxable is if it is received directly from the customer.

 

Trying to understand this with a bit of understanding of our Country's IRS laws.  This money that they receive directly from a guest is considered a "gift"?  Monetary gifts to others are not taxable as I understand our tax laws (within certain $$ limits, of course).

 

 

[rkacruiser]

18 hours ago, USN59-79 said:

I remember cruising with HAL about 20 years ago when we actually received a statement saying gratuities are neither expected or required. 

 

Experienced that; didn't work then.  Many, including me, still offered gratuities to those whom I felt deserved them.  An advertising gimmick for HAL as the company transitioned from Holland America Line to Holland America Cruises, in my opinion.  

 

These cruise offers with "gratuities included" always make me wonder what percentage of guests still tip.  And, what about the "all inclusive cruise lines" where, I understand, no gratuity is expected by any of the staff?  

[chengkp75]

17 minutes ago, rkacruiser said:

 

Trying to understand this with a bit of understanding of our Country's IRS laws.  This money that they receive directly from a guest is considered a "gift"?  Monetary gifts to others are not taxable as I understand our tax laws (within certain $$ limits, of course).

 

 

I have no idea of the rationale, but the tax code was specific about this, when I looked it up a couple years ago, in response to questions about cruise ship "tips".  Any money received in an "employer/employee" relationship is taxable.  Since the company collects the HSC, and distributes it to the employees, it falls under this definition.

[nocl]

3 hours ago, rkacruiser said:

 

Trying to understand this with a bit of understanding of our Country's IRS laws.  This money that they receive directly from a guest is considered a "gift"?  Monetary gifts to others are not taxable as I understand our tax laws (within certain $$ limits, of course).

 

 

When a customer of a business gives money to an employee of a business as a result of services performed, it is a tip, not a gift.

 

As far as the US is concerned according to the IRS

 

Tips are discretionary (optional or extra) payments determined by a customer that employees receive from customers.

Tips include:

Cash tips received directly from customers.

Tips from customers who leave a tip through electronic settlement or payment. This includes a credit card, debit card, gift card or any other electronic payment method.

The value of any noncash tips, such as tickets or other items of value.

Tip amounts received from other employees paid out through tip pools, tip splitting, or other formal/informal tip sharing arrangement.

All cash and non-cash tips an received by an employee are income and are subject to Federal income taxes. All cash tips received by an employee in any calendar month are subject to social security and Medicare taxes and must be reported to the employer.

Edited September 9, 2021 by nocl

[Woofbite]

15 hours ago, rkacruiser said:

 

Experienced that; didn't work then.  Many, including me, still offered gratuities to those whom I felt deserved them.  An advertising gimmick for HAL as the company transitioned from Holland America Line to Holland America Cruises, in my opinion.  

 

These cruise offers with "gratuities included" always make me wonder what percentage of guests still tip.  And, what about the "all inclusive cruise lines" where, I understand, no gratuity is expected by any of the staff?  

And now that tips are charged, many including me still offer gratuties on top of the included tips. I expect in a few years it will be expected of all passengers or they will be considered chintzy.  Seems to be the natural progression of things.  In the U.S.take out restaurant and curbside delivery people expect tips and an area is included on all credit card charge areas.  Even fast food counters have tip jars.  To top it off, Mariott Hotels now asks guests to tip room attendants on their $300 a night room because maids are so poorly paid.  Totally out of hand.

 

[nocl]

1 hour ago, Woofbite said:

And now that tips are charged, many including me still offer gratuties on top of the included tips. I expect in a few years it will be expected of all passengers or they will be considered chintzy.  Seems to be the natural progression of things.  In the U.S.take out restaurant and curbside delivery people expect tips and an area is included on all credit card charge areas.  Even fast food counters have tip jars.  To top it off, Mariott Hotels now asks guests to tip room attendants on their $300 a night room because maids are so poorly paid.  Totally out of hand.

 

You mean the room attendants that will only make up the room when you request it.

 

All of the major chains are moving to much lower level of service when it comes hotel rooms.  The days of the free daily service may be over.  One hotel company is testing ala carte pricing with lower room prices, but putting fees on everything individually (pool, gym, daily room servicing, etc)

[rkacruiser]

5 hours ago, nocl said:

One hotel company is testing ala carte pricing with lower room prices, but putting fees on everything individually (pool, gym, daily room servicing, etc)

 

Please, inform us of what that hotel company is.  

[rkacruiser]

8 hours ago, Woofbite said:

To top it off, Mariott Hotels now asks guests to tip room attendants on their $300 a night room because maids are so poorly paid.  Totally out of hand.

 

The Marriott International Brand of hotels are so inconsistent about this.  A few--and I mean a few--have an envelope in the room for the guest to leave a gratuity.  As of 2020, when I last stayed at a Marriott brand property, most do not.  Maybe what to do concerning this "issue" is left to the discretion of the franchisee?  

Edited September 9, 2021 by rkacruiser

[nocl]

27 minutes ago, rkacruiser said:

 

Please, inform us of what that hotel company is.  

The company is MCR hotels.  It is one of the companies that owns a large number of hotels, some affiliated with Marriot, some with Hilton, and some independent.  It was a story on CNBC a couple of weeks back where the CEO said that they were doing it with their independent hotels (not with their chain affiliated hotels yet), though the chains were interested to see how it goes.

 

Here is an article about it

 

https://money.yahoo.com/a-la-carte-pricing-is-the-future-of-hotels-182238000.html

Edited September 9, 2021 by nocl

[nocl]

23 minutes ago, rkacruiser said:

 

The Marriott International Brand of hotels are so inconsistent about this.  A few--and I mean a few--have an envelope in the room for the guest to leave a gratuity.  As of 2020, when I last stayed at a Marriott brand property, most do not.  Maybe what to do concerning this "issue" is left to the discretion of the franchisee?  

The CEO of Marriott made it quite clear during a recent analyst meeting that their primary customer was the owners of the hotels that affiliated their hotels with Marriot, the people that actually stayed in those hotels were customers of the hotels, not of Marriot.  Marriot is doing a push trying to sign up more hotels.

[rkacruiser]

MCR Hotels is not a hotel brand.  It is a franchise company as you said.  Are they at the "cutting edge" of the issue?  Time will tell.