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can someone explain... $

mcb916 Posted:

Re: can someone explain... $


Posted by ayadali


Posted by mcb916


Posted by ayadali


Posted by ayadali

I think it is $120 X 18% X 8.625% or $153.81 per person. Your hall can give you the exact amount.



I don't think I'm wrong - this is how WM came up with my total. Maybe each hall does it differently which is why I suggested that Allison contact her hall directly.



They shouldn't be taxing you on a gratuity. If you think about when you go out to a restaurant, you don't pay tax on what you leave for the server. I would talk to your hall because that will increase your price by quite a bit!!!





The wedding business is lousy - most halls tax gratuity. There was a thread about this a while ago.




That's crazy!! Now I have to look in my contract. It's amazing what these people get away with just because the word 'wedding' is attached to it. No wonder we all go over budget!!!!
aliwnec10 Posted:

Re: can someone explain... $

I'M SO CONFUSED! Okay girls i emailed my guy at the reception place and asked him. I'll let you know what he said.

According to Francesca at Dazzling Affairs... you add it up like this: (i just got FM from her)

$120 x 18% (gratuity) = 21.60
$120 x 8.625% (tax) = 10.35

$120 + 21.60 + 10.35 = $151.95

$151.95 x # of guests =
mcb916 Posted:

Re: can someone explain... $


Posted by aliwnec10

I'M SO CONFUSED! Okay girls i emailed my guy at the reception place and asked him. I'll let you know what he said.

According to Francesca at Dazzling Affairs... you add it up like this: (i just got FM from her)

$120 x 18% (gratuity) = 21.60
$120 x 8.625% (tax) = 10.35

$120 + 21.60 + 10.35 = $151.95

$151.95 x # of guests =



I just asked FH about this and he says it's illegal for the halls to tax the gratuity so for all those who are getting taxed on this I would look into it. I couldn't find a link to anyplace that has tax laws though. Any laywers that know anything about this????
cmc Posted:

Re: can someone explain... $

Usually they just add the tax to the pp total but either way it would come out to the same amount in the end.

aliwnec10 Posted:

Re: can someone explain... $

Okay ladies... so i spoke w/John at my reception place and YOU ARE taxed on the gratuity.

So you add it like this:

120 (price per person) x 18% x 8.625%= to give you the real price per person.
In my case, thats $153.81 times the # of people you are having.

ayadali Posted:

Re: can someone explain... $


Posted by aliwnec10

Okay ladies... so i spoke w/John at my reception place and YOU ARE taxed on the gratuity.

So you add it like this:

120 (price per person) x 18% x 8.625%= to give you the real price per person.
In my case, thats $153.81 times the # of people you are having.




See, I was right!
Shamrock925 Posted:

Re: can someone explain... $

ladies.....

a service charge goes to the catering hall for the salaries of all employees - the chef, the staff, etc. And as per NY state law, service charge IS taxed. You shouldnt be angry at the caterer for following the law!

a gratuity or tip does not get taxed by NY state law. A gratuity goes to one person or several people, but not the house.

so based on the law....

$120.00 X 18% X 8.625% = $153.81 per person


i had my BM write the price per person (bottom line) on the contract. The only thing that could change is the sales tax! I wouldnt sign the contract without knowing what I was really paying!

LovelyChas Posted:

Re: can someone explain... $

I am so confused!!!!!!!!!!!!!

if I do:

price per person X 18% X 8.625% on a calculator I get 8.4533625 or something like that

Should I be doing it separatly??????

Please help!
nicolehojo Posted:

Re: can someone explain... $

From what i understood, you are not allowed to be taxed on the gratuity, so you do the tax first... then then gratuity on the original number, not taxed. isnt it a law or something? lool

Shamrock925 Posted:

Re: can someone explain... $

you have to read your contract ladies. if it says service charge you HAVE to pay tax on it. It is a state law. The banquet halls dont decide what gets taxed and what doesnt.

Take your price per person and X it by the service charge %. That will give you the amount of the service charge to be added to the price per person. Once you add the service charge to the price per person, then multiply that number by sales tax - 8.625%. That will give you the amount of tax per person. Now add the tax to the number with the price per person and service charge added and you get the bottom line price per person.


JCam695 Posted:

Re: can someone explain... $


Posted by LovelyChas

I am so confused!!!!!!!!!!!!!

if I do:

price per person X 18% X 8.625% on a calculator I get 8.4533625 or something like that

Should I be doing it separatly??????

Please help!



To calculate it, do it like this:

120 (or price per person) x 1.18 x 1.08625
maria5-6-05 Posted:

Re: can someone explain... $


Posted by aliwnec10

i'm so bad at this. Okay one more question (i hope). On the tax... do you take the price per person and times that by 8.65% tax? Or do you take the price per person, add in the 18%, and then times it by 8.65%?

If this makes it easier... my price per person is $120 and i'm having 170 people. The number i got was $25,836.66. Is that right?



That is exactly correct. You tack the 18% onto the $120 which = $141.60 then you take $10.38 (tax which is $120*.0865) and add that to the $141.60 which = $151.98 per person

Multiply that times 170 = $25,836.60
LovelyChas Posted:

Re: can someone explain... $

thank you ladies

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