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DO you pay tax on the 17% Gratuity???

shelzyp Posted:

DO you pay tax on the 17% Gratuity???

This does not seem to make sense, I don't see how the Hall has to pay tax on the Gratuity so I don't see why I should.

Nora101004 Posted:

Re: DO you pay tax on the 17% Gratuity???

No-
its calculated like this:50/head
Price per person $50.00
50 +17%= 8.50
50 + 8.75%(tax rate) 4.38
TOTAL COST $62.88
jvs77 Posted:

Re: DO you pay tax on the 17% Gratuity???

I think that people have posted this question before, and I believe that the answer is no - you are not supposed to pay tax on gratuity.

shelzyp Posted:

Re: DO you pay tax on the 17% Gratuity???

Good I just saved myself almost 200 dollars!!!

jenny2penny Posted:

Re: DO you pay tax on the 17% Gratuity???

I would think you don't pay tax on gratuity. think about when you pay a bill at a restaurant. you leave a gratuity After you paid for your service.

SomedayBride Posted:

Re: DO you pay tax on the 17% Gratuity???

Ask your hall just to be sure. There is some way of going around it (in their favor) where you end up having to pay tax on the gratuity. I think if they call it a service charge, it's taxable, gratuity it's not but I'm not completely sure.

112903 Posted:

Re: DO you pay tax on the 17% Gratuity???

at my hall it is a 18% service charge and yes it is taxed. I would double check with your hall

luvsun27 Posted:

Re: DO you pay tax on the 17% Gratuity???

I asked my hall the same thing...just last night. They call it a service charge, so there's tax on top of that. They made the comparrison to a hotel...you know all those extra room fees they charge you...then they add the tax. Not sure I agree with them on that...but there's nothing I can do. Oh well.

AtticaQT Posted:

Re: DO you pay tax on the 17% Gratuity???

our service charge got taxed

shelzyp Posted:

Re: DO you pay tax on the 17% Gratuity???

They call it a service charge, not a gratuity.

I am goign to call NYS today, and find out from them.

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