Gratuity/ Tax question

Naunie Posted: Jul 20, 2006 03:57 PM

Gratuity/ Tax question

I just received my menu mock up, and I noticed that I am paying tax ont he 'Service Charge'.
I sthat even legal? Is this one of those loop holes, where since it's not called 'Gratuity', they can do that?
Just curious.

ali120206 Posted: Jul 20, 2006 04:03 PM

Re: Gratuity/ Tax question

Yep, it's one of those loopholes!

Naunie Posted: Jul 20, 2006 04:10 PM

Re: Gratuity/ Tax question

Son of a *****

sarahradio5 Posted: Jul 20, 2006 04:12 PM

Re: Gratuity/ Tax question

I still have yet to find an answer to what the reception halls get out of charging us tax on the service charge?!?!?!?!?!?!

Doesn't tax go to the state?!

So, what's it to THEM if we have to pay MORE tax???

cnj Posted: Jul 20, 2006 04:15 PM

Re: Gratuity/ Tax question

I was thinking the same thing! I don't see how it benefits them??
Maybe it has something to do with how they pay the staff?

metmymatch Posted: Jul 20, 2006 04:32 PM

Re: Gratuity/ Tax question

unfortunately, yup, it's legal. you might want to ask them if you can pay that in cash to avoid the taxation on it. might save you a couple hundred bucks.

metmymatch Posted: Jul 20, 2006 04:34 PM

Re: Gratuity/ Tax question

Posted by sarahradio5

I still have yet to find an answer to what the reception halls get out of charging us tax on the service charge?!?!?!?!?!?!

Doesn't tax go to the state?!

So, what's it to THEM if we have to pay MORE tax???

here's how it was explained to me:
the service charge is divided up among the staff and paid to them in their paychecks. so, the staff gets tax taken out of it. my guess is that has something to do with it. what, i don't know. but something.