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Do you pay the 8.625% Tax on the 20% service charge??

2007 Crescent Bride Posted:

Do you pay the 8.625% Tax on the 20% service charge??

Just got my final bill from the hall and I am trying to figure out why I am off. Trying to see if I screwed up.

MayWeddingGrl Posted:

Re: Do you pay the 8.625% Tax on the 20% service charge??

no, it should be 8.625% on the final and then the additional 20% for the service fee. They shoudn't be charging tax on a service fee. Definitely talk to your RH if thats the case, they might have gotten their numbers wrong

acsm Posted:

Re: Do you pay the 8.625% Tax on the 20% service charge??


Posted by 2007 Crescent Bride

Just got my final bill from the hall and I am trying to figure out why I am off. Trying to see if I screwed up.




Hi

you are taxed on the service charge.. so you should calculate everything included the service charge then apply the tax.

HTH
Wifeynella Posted:

Re: Do you pay the 8.625% Tax on the 20% service charge??

If its labeled a 'service charge' its taxable. if its labeled 'gratuities or tips' its not.


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