OK to reimburse for gratuities (tips)?

[Guest MSMA]

Patient is travelling for medical care which require lodging & meals.

Question: Are gratuities (tips) eligible for reimbursement?

Instinct says no...

[GBurns]

What would be your feeling about those many institutions such as hotel and hotel restaurants that automatically add the gratuity to the bill? If you have to pay those because it is part of the total bill, why would it not be payable if separated? Do you not pay for prescriptions which inclde the service charge (dispensing fee)? What is the difference between one service charge and any other? They are all part of your total bill, no different from the S&H charge on medications ordered by mail.

[Guest JTrini8302]

Good question. I had this come up when I was administering HCRAs & DCRAs myself.

Tips for service are a courtesy and generally at the discretion of the person giving it. It is not a cost necessary to receive services, such as rx dispensing cost, S&H for internet/mail order.

Unless the gratuity is added to the bill and the restaurant is telling you how much to pay specifically on their receipt (such as where restaurants automatically add x% to the bill for parties of "y" or more), I would say no unless there is a loophole that states or can be interpreted otherwise.

[GBurns]

Therein lies the question. When the restaurant etc unilaterally puts it there, whether a reasonable amount or not, and the person does not object but pays the bill, you then willingly reimburse, Why not give the same treatment when that same person themself unilaterally and thinking that it is necessary and reasonable,adds it on to the bill?

[Mary Kay Foss]

What if the patient needed special assistance at the airport, like a wheelchair and attendant? Would you consider a gratuity to that person reimbursable?

Just curious.

[Guest JTrini8302]

Pub 502, under "Meals" does not list tips &/or gratuity as reimbursable. (I will agree that it does not specifically EXCLUDE them, either...)

Tips & gratuities, though an expectancy, are still an optional courtesy, amounts discretionary and not required to receive services regardless of the type of service.

(And I say this having worked in a restaurant through high school & college relying on busy Friday and Saturday nights.)

As we've all seen on menus at restaurants, you are informed up front that if you meet a specifc requirement (eg, parties of 6 or more), an x% gratuity is automatically added to the bill. Here, it is implied that to receive services (food and someone to cook & bring it to you), you pay the gratuity.

If your party is of 5 or less, then you are exempt from the requirement and gratuity returns to optional and amount discretionary.

When these situations arose meals were paid and tips/gratuity excluded. And surprisingly, none of our participants who had submitted ever questioned it. Go figure.