oboloo Glossary

Tips

oboloo Glossary

Tips

A tip, also known as a gratuity, is money that is given voluntarily by customers to reward and show their appreciation for the services provided by an employee. It is usually given in addition to the cost of the goods or services purchased. Tips can be offered at the discretion of the customer and accepted with gratitude by the recipient. Tips are considered a form of income and should be correctly accounted for and taxed accordingly. In some industry sectors, tips are pooled and shared among employees to ensure fairness. When leaving a tip, it is important to consider the quality of service received, but ultimately the amount should be based on what you can comfortably afford.