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gratuity and tax question

night_nurse Posted:

gratuity and tax question

Im sure this question has been asked 1000 times, but for some reason I always miss it. Anyways, FYI Im cut and pasting this in the 2012 section as well. Onto the question...

Say a reception hall is $100 pp and 20% gratuity. Do the places put tax and gratuity on that $100 ($8.75 and $20) making the real price $128.74 pp.

or

Is it $100 pp, then the ($8.75 tax) then is the $108.75 gratutitized ($21.75 = 20% of 108.75) making the total price of $130.50 pp.

or

Is it $100 pp, then the 20% gratuity. Then is the $120 taxed ($10.50 = .875% of 120), making the final price $130.50.

well, I guess 2 and 3 come out to the same thing
, but what about 1 vs 2.
LIbridey88 Posted:

Re: gratuity and tax question

Ok from what I saw the tax is added on per person so it changes the amount per person by roughly $20. I was able to find a venue that gave me the price with the tax and gratuity included.

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