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Silly Question on Calculating Price Per Head??

lmavolio Posted: Jan 23, 2006 10:25 AM+

lmavolio MEMBER SINCE: 11/05 TOTAL POSTS : 285 WEDDING DATE: Jun 30, 2006

Posted: Jan 23, 2006 10:25 AM

Silly Question on Calculating Price Per Head??

Hi All - I should know this, but just want to be sure. When you calculate the price per head including tax & tip....is the tip calculated on top of the base price + tax OR is it calculated on the base price alone....

i.e, if price per head is $100, tax is 8.65% and tip is 18% - is the final price per head $128.20 OR is it 126.25?? Thanks

Shorty McBride Posted: Jan 23, 2006 10:29 AM+

Shorty McBride MEMBER SINCE: 4/05 TOTAL POSTS : 12785 WEDDING DATE: Nov 23, 2007

Posted: Jan 23, 2006 10:29 AM

Re: Silly Question on Calculating Price Per Head??

depends - is the hall calling the 'tip' a SERVICE CHARGE, or a GRATUITY?

If its a service charge, the 18% is legally taxable.

If its a gratuity, the 18% cannot be taxed.

Just have to read your contract for wording.

Soon2BeMrsD Posted: Jan 23, 2006 10:30 AM+

Soon2BeMrsD MEMBER SINCE: 11/05 TOTAL POSTS : 2058 WEDDING DATE: Apr 28, 2007

Posted: Jan 23, 2006 10:30 AM

Re: Silly Question on Calculating Price Per Head??

i believe it should be:
100x18%=18
100x8.35%=8.35
100+18=118+8.35=126.35
TOTAL= 126.35

HOWEVER some places tax the gratuity calling it a service charge so its 100x18%=?x8.35%

ask your hall which way they do it

LISA6569 Posted: Jan 23, 2006 10:54 AM+

LISA6569 MEMBER SINCE: 12/05 TOTAL POSTS : 614 WEDDING DATE: Jan 06, 2007

Posted: Jan 23, 2006 10:54 AM

Re: Silly Question on Calculating Price Per Head??

I WOULD CALCULATE IT $100 X 26.65% = $ 126.65/PER HEAD

Meaghan729 Posted: Jan 23, 2006 10:58 AM+

Meaghan729 MEMBER SINCE: 1/06 TOTAL POSTS : 2456 WEDDING DATE: Jul 29, 2007

Posted: Jan 23, 2006 10:58 AM

Re: Silly Question on Calculating Price Per Head??

Posted by LISA6569

I WOULD CALCULATE IT $100 X 26.65% = $ 126.65/PER HEAD

you can't add the rates together if they tax the service charge. This is the calc:

$100*1.18 = $118
then $118*1.0865 = $128.21

That is if your hall taxes the service charge.

LISA6569 Posted: Jan 23, 2006 11:08 AM+

LISA6569 MEMBER SINCE: 12/05 TOTAL POSTS : 614 WEDDING DATE: Jan 06, 2007

Posted: Jan 23, 2006 11:08 AM

Re: Silly Question on Calculating Price Per Head??

Posted by Meaghan729

Posted by LISA6569

I WOULD CALCULATE IT $100 X 26.65% = $ 126.65/PER HEAD

you can't add the rates together if they tax the service charge. This is the calc:

$100*1.18 = $118
then $118*1.0865 = $128.21

That is if your hall taxes the service charge.

HMMMM...MY HALL CALLS IT A GRATUITY AND THIS IS HOW THEY FIGURED IT ON MY CONTRACT. I GUESS IT DEPENDS ON THE WORDING ON THE CONTRACT.

Meaghan729 Posted: Jan 23, 2006 11:10 AM+

Meaghan729 MEMBER SINCE: 1/06 TOTAL POSTS : 2456 WEDDING DATE: Jul 29, 2007

Posted: Jan 23, 2006 11:10 AM

Re: Silly Question on Calculating Price Per Head??

If they call it a gratuity - I am pretty sure they can't tax it. If it is called a service charge (which my hall does) then you can. So if you take the pph and then calculate the grat/service charge, then take that amount and calc the tax, then you are taxing the service charge.

I would check with the hall to make sure!