Here are three other situations:
Is there anything wrong with not having a tip jar? I always thought it odd as a customer to see a tip jar there and I haven't even tasted my product... how do I know if they have done it properly.
I've have pretty products with limited interaction and only average taste but only learn the results after my money is in the jar... that stinks!
As a customer I have also not been sure if the tip jar is only for the Barista or for the person who fixes my food as well. What if I don't order a specialty drink... do I still tip?
I have also seen tips for charity. All workers understand that the tips go to a designated charity (identified on the jar). Then the employer pays a good and honest wage and even matches the the jar amount. It is publicized with a thank you to the generosity of the customers for helping the employes raise X dollars for charity. I give generously to those tip jars.
I do agree with Phil though if you are having a tip jar for the baristas then his method of division is good.
As a business owner assuming anything relating to taxes or relying strictly here on BX for information would be foolish IMO.Thanks to everyone for their feedback, it is extremely valuable. Am I correct in assuming that the employee is then fully responsible for reporting "tip income" to the IRS (cash or credit card) and not the business owner?