[mnehring]

Legally, it isn’t a gift though. It is compensation. It is, in essence, commission that you control the rate of. No different than the commission you pay when you buy a car except that you control the rate.

[Sgt_Schultze]

Of course you're right. For that reason it is always better to tip cash as there is no corresponding paperwork.

In an unrelated matter, Here's a link to a story about an employer - Robert Kahre - who designed a novel way of paying his employees so as to help them keep from filing a return.