Cost of Wedding.....tax....tip...how does it all work!??
JennyAl
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Cost of Wedding.....tax....tip...how does it all work!??
Hi I just wanted to know....shouldnt the total cost of the reception be the base( i.e. 95/pp)....then tip (20% of base) then the tax (8.75% of the base)....isnt that the law or something...my BM is charging me the tax based on the base plus tip.....tell me if i'm wrong....thanks!!
agentangel
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Re: Cost of Wedding.....tax....tip...how does it all work!??
Are they calling it a service charge or a gratuity? I don't think they can tax tip, but they can service charge.
M&LSept1606
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Re: Cost of Wedding.....tax....tip...how does it all work!??
I hope I'm right but I want to say..base price...service.. then tax. (the maitre D tip is separate and definitely not taxed) They might just be calling it something different.
JennyAl
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Re: Cost of Wedding.....tax....tip...how does it all work!??
I'll have to double check....but i think its called service charge.....
dpli
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Re: Cost of Wedding.....tax....tip...how does it all work!??
Posted by JennyAl
Hi I just wanted to know....shouldnt the total cost of the reception be the base( i.e. 95/pp)....then tip (20% of base) then the tax (8.75% of the base)....isnt that the law or something...my BM is charging me the tax based on the base plus tip.....tell me if i'm wrong....thanks!!
Most of the halls charge tax on the 'service charge' or gratuity. Check your contract.
becks23
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Re: Cost of Wedding.....tax....tip...how does it all work!??
Most halls call it a 'service charge' and tax you on it.
Suzannebride
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Re: Cost of Wedding.....tax....tip...how does it all work!??
If it's a gratuity, you can add the tax and gratuity percentages together (say 8.75% + 18% = 26.75%) and add that to the base. So if it's $100 pp, add 26.75% for a total of $126.75 pp. Hope that helps.
JennyAl
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Re: Cost of Wedding.....tax....tip...how does it all work!??
they do call it a service chrage.....they can tax on that??? That soooooo sux! why is it that they can tax on 'service charge' and not on tip
agentangel
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Re: Cost of Wedding.....tax....tip...how does it all work!??
Posted by JennyAl
they do call it a service chrage.....they can tax on that??? That soooooo sux! why is it that they can tax on 'service charge' and not on tip
service charge is different from gratuity. gratuity is what it is and cannot be taxed. service charge is slightly different...usually it means that the total is only partially paid to the service personnel or are used in whole or in part to pay their wages - not as a tip on top of their wages. hope that helps...
when we signed our contract we made sure to have it say gratuity.
JennyAl
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Re: Cost of Wedding.....tax....tip...how does it all work!??
can i ask them to change the contract term to 'gratuity?' so i can save me $300??
serendipity0680
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Re: Cost of Wedding.....tax....tip...how does it all work!??
Just ask the Manager how they figure out the total per person price. Our Banquet Manager explained it us.
tray831
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Re: Cost of Wedding.....tax....tip...how does it all work!??
Posted by JennyAl
can i ask them to change the contract term to 'gratuity?' so i can save me $300??
It NEVER hurts to always ask whatever you want......the worst they say is NO, but at least you asked! And you can be honest and tell her the reason being.......you'd like to save some $money$.
Also, in most cases, if the entire hall is all paid in cash, its easier for them to work w/ you on stuff like this........but I dont know if it thats what you were planning on doing. Good luck.
