So, we got our final balance broken down into components. And it looks like they figured out the service charge amount first...and then added that to the food cost. THEN calculated tax based on food cost + service charge.
Is that normal?!!! That they are charging tax on the gratuity?!!
RadiantBride
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Re: Help with my RH final balance please!
Hey gratuitity should not be taxable. ( I am an accountant) Some places might but if you want more info, fm me and I will send you some of the NYS tax laws so you can take a look.
HTH
anneandchris
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Re: Help with my RH final balance please!
Yes this is the standard everywhere -- not just LI catering halls.
For girls who it is written in their contracts differently DOUBLE CHECK!!!!!!!
wording can be tricky and I have never heard of not being taxed on either the gratuity or service charge!
I am planning for a February 09 Friday night wedding...any pricing help would be much appreciated for Chateau LaMer.
anneandchris
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Re: Help with my RH final balance please!
Posted by JJC
I am planning for a February 09 Friday night wedding...any pricing help would be much appreciated for Chateau LaMer.
I would start a new post. this is an old thread.
Soon2beAlberti
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Re: Help with my RH final balance please!
wait...this doesn't make sense...gratuity is gratuity how they pay their people is none of my concern. what the RH spends to host an event vs the cost pp should more than cover the halls expenses to run...and this means workers as well...i understand adding the manditory gratuity percent...but taxing it too? god...they really do slay us brides.
msflesch
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Re: Help with my RH final balance please!
Posted by jenlen
So, we got our final balance broken down into components. And it looks like they figured out the service charge amount first...and then added that to the food cost. THEN calculated tax based on food cost + service charge.
Is that normal?!!! That they are charging tax on the gratuity?!!
The tax law if that if they call it a service charge then they can tax you on it!
Soon2beAlberti
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Re: Help with my RH final balance please!
Posted by msflesch
Posted by jenlen
So, we got our final balance broken down into components. And it looks like they figured out the service charge amount first...and then added that to the food cost. THEN calculated tax based on food cost + service charge.
Is that normal?!!! That they are charging tax on the gratuity?!!
The tax law if that if they call it a service charge then they can tax you on it!
yeah i was just reading that...those darn loopholes. as if they didn't get enough of our money.
colleen1117
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Re: Help with my RH final balance please!
Posted by Dr Meg
From what my RH told me, when they call it a 'service charge' it gets taxed. My BM said 'the servers have to pay taxes on it, so do you.'
I was going to say the same. you technically CANT tax a TIP. but you CAN tax a SERVICE CHARGE!
I know - it stinks! we should all get a tax credit the year we get married!!!!!
siffleuse319
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Re: Help with my RH final balance please!
In the state of New York a 'Service Charge' is taxable, but a gratuity isn't. I tried to negotiate this with my vendors before we signed the contract. I asked them to label the service charge as a gratuity so I wouldn't be taxed on it, but they didn't budge. It's a terrific scam, really. Think about how much less you would be taxed if you minused the couple thousand dollar 'Service Charge', which you know the servers aren't getting. Anyway, it's the rules and unless you negotiate before signing....then the law is upheld. It suks......
Saram
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Re: Help with my RH final balance please!
Posted by babieblueeyez96
yeea im at chateau la mer too and i have the same thing going on
wait they are not being tipped on the gratuity? oh geez...who and how much do we have to tip that night?
jeanne08
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.
babygirlb
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Re: Help with my RH final balance please!
That is crazy. I hope my calculations is right.
Espo22
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Re: Help with my RH final balance please!
Posted by Saram
Posted by babieblueeyez96
yeea im at chateau la mer too and i have the same thing going on
wait they are not being tipped on the gratuity? oh geez...who and how much do we have to tip that night?
no it just goes to pay their salary but doesnt go towards a tip for them
Ms Sawney
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Re: Help with my RH final balance please!
It doesn't make sense but I guess this is how they make their profit
Wifeynella
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Re: Help with my RH final balance please!
ugh.. i just did the math and 'technically' its only $3 pp more than I orginially figured. so its anywhere from an additional 600-750 dollars!!
Saram
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Re: Help with my RH final balance please!
what about the matre d fee thats included at chateau la mer? do we have to tip him again?
