Post New Topic

Catering halls and tax on Gratuity

LuvMyFH Posted:

Catering halls and tax on Gratuity

Does anyone know where I can find information on the internet about taxing gratuity. I have been told by other catering halls that a catering hall cannot tax gratuity and mine is!!!

I mentioned this to them when I booked and they wouldn't budge...I want to bring it to them in writing so I don't have any problems...

I appreciate any help!

Thanks
enjft Posted:

Re: Catering halls and tax on Gratuity

They tax the serice charge not gratuity so they can get away with it.

reenielady Posted:

Re: Catering halls and tax on Gratuity

If a catering hall is charging a service charge then they must charge sales tax. If it a gratuity being passed on directly to the employees i believe they are not supposed to charge tax. There have been several threads regarding this. You may want to search and see what comes up.

neener1211 Posted:

Re: Catering halls and tax on Gratuity

They can tax service charge, they cannot tax gratuity. It's the law.

bellaro782 Posted:

Re: Catering halls and tax on Gratuity

Ya, that doesn't sound right... Gratuity should not be taxed

snowcat Posted:

Re: Catering halls and tax on Gratuity

Service charges must be taxed, they usually go to the hall's salaries- look on you contract and see the wording- if it literally says: gratuity is ___% and then tax is added, that is not legal

Reply to this topic

Log in to reply or quote a post.