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Gratuity/Service Tax???

Jayla127 Posted:

Gratuity/Service Tax???

Is the gratuity taxed or no. Can someone show me an example of the breakdown. I would gladly appreciate your help.

TIA
anneandchris Posted:

Re: Gratuity/Service Tax???

Yes the Gratuity is taxed.

Take your per person number times you gratuity (prob 19 or 20%) and then tax that number 8.625

HTH
colleen1117 Posted:

Re: Gratuity/Service Tax???

i was baffled by this too. technically gratuity is not supposed to be taxed. they get away with taxing you because its a 'service' charge rather than a gratuity. i know i was calculating it wrong in the beginning because i was thinking 'tip'

good luck!
MsPotterhead Posted:

Re: Gratuity/Service Tax???

yup, that unfortunately seems to be standard at all the places i looked at, except for the Harbour Club. That was the only RH i visited that didn't tax the tip. It just doesn't seem right!

november152008 Posted:

Re: Gratuity/Service Tax???

depends on the RH most the gratuity is taxed because they call it a 'service charge' instead of a tip....
jeanne08 Posted:

Re: Gratuity/Service Tax???

The gratuity should NOT be taxed!!!!!!!!!!!!!!!!!!!!!!!!!
Take your price x percent gratuity=Gratuity
Take your price x percent tax=Tax

Add Your Price
+ Gratuity
+ Tax
= Grand Total (per person)
snowcat Posted:

Re: Gratuity/Service Tax???

gratuity is not taxed
service charge is

it depends on what your hall calls it

If it is a gratuity, it can not be taxed bc you can't tax tips, however if it is a service charge, it goes towards things for the hall, which must be taxed by law-- check what your hall calls it

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