Heres a question...

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Posted by kmkelly

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Posted by Aly0124

The numbers are a bit confusing. One thing you need to remember is that gratuity is taxable.

Multiply your price per person times the gratuity. Then, multiply that number times the tax rate.

It looks like this:

(price pp x gratuity) x tax = total

$125 pp x 15% gratuity = $125 x 1.15 = $143.75

$143.75 pp x 8.75% tax = $143.75 x 1.0875 = $156.33

Does that make sense?

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I didn't know the gratuity was taxable.

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I didn't think gratuity was taxable either...

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Posted by KvsGrl


I didn't know the gratuity was taxable.

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I didn't think gratuity was taxable either...

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Neither did I

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Posted by shellnroc

Yes, the tax went down on LI but when you signed your contract it at 8.75.
Which tax do they charge you????

Sorry, I don't mean to make it more confusing.

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I was left with the assumption you pay tax at the end when the balance is due, based on the tax rate at that time of (final) payment.

So any payments made between booking and final payment should be going towards your COST not towards Tax, so at the end you pay your balance and the tax on total COST of the wedding... I could be wrong, but this is how I understood it when I booked.

If you pay 'gratuity' it is not taxed, if your place calls it a 'service charge' it is then taxed.

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Posted by TheBigDay

If you pay 'gratuity' it is not taxed, if your place calls it a 'service charge' it is then taxed.

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Bingo!

They call it a service charge, rather than a gratuity or tip...that way they can tax you.

The easiest way is to add the number of your gratuity (15%) to the sales tax number which on LI is 8.625 (don't even know exactly)...

you get 23.625%

divide 125 by 23.625% and you get the extra number you need to add to the pp price $29.53

125+29.53 = $154.53 and that is the real pp number

you are really lucky they only charge 15%...my hall charges 20%

Just to clarify, I was referring to gratuity that is added to your bill, like a service charge.

My reception hall taxes gratuity. You may want to check with yours just to be sure. You don't want to be surprised by your bill at the end.

Janie:

you can also have Maurizio or one of the other BM's do a mock bill accoridng to your minium guarantee of ppl!! They did one for me.. I wanted to know how much I was going to owe them in total if I stood at 120 guests..