Ok so I got a price per person but then there is a 20% service charge and 8.75% tax. Is there a way to calculate what it would be per head? Or do I need to know how many guests and then calculate?
bella_bride
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Re: how to calculate real price per person?
I am sure there is an easier way to do this, but here is what I did:
Let's say the price per person is $100
$100 x .20 (20%) = $20
$100 + $20 = $120
$120 x .0875 (8.75%) = $10.50
$120 + $10.50 = $130.50
Real price pp = $130.50
SoonToBeMrsONeill
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Re: how to calculate real price per person?
The percentages are added on per person, so whatever your cost is times the tax and gratuity is per person...
Ex: 50 pp ++ :
50 * .0875 = 4.375 50 * .20 = 10
actual: 50 + 10 + 4.4 = 64.40 per person
I hope... I stink at math haha
SoonToBeMrsONeill
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Re: how to calculate real price per person?
Posted by bella_bride
I am sure there is an easier way to do this, but here is what I did:
Let's say the price per person is $100
$100 x .20 (20%) = $20
$100 + $20 = $120
$120 x .0875 (8.75%) = $10.50
$120 + $10.50 = $130.50
Real price pp = $130.50
Hmm, does it make a difference to do the tax after? lol! So happy someone else responded to this
bella_bride
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Re: how to calculate real price per person?
Yes, I think the tax is applied after the services. I would check with the BM, but I am pretty sure.
fdnybride163
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Re: how to calculate real price per person?
you should ask your hall if they tax the service charge. if they dont just times your per person price by 26.625% (if the service charge is 20%)
CaseyCase
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Re: how to calculate real price per person?
I know I'm confused is tax before or after service charge? Isn't service charge another name for gratuity which would mean no need to tip?
leesah85
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Re: how to calculate real price per person?
it depends on what your contract says.
most halls charge the 20% service fee and then they tax it, so it actually works out to MORE than if you had 20% + state tax.
green_tea
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Re: how to calculate real price per person?
Posted by SoonToBeMrsONeill
The percentages are added on per person, so whatever your cost is times the tax and gratuity is per person...
Ex: 50 pp ++ :
50 * .0875 = 4.375 50 * .20 = 10
actual: 50 + 10 + 4.4 = 64.40 per person
I hope... I stink at math haha
the thing is, the service charge of 20% is often taxable... if that's the case, then you have to add the 20% to your initial headcount BEFORE you multiply by .0875. In the above example, the difference in tax is 5.25 instead of 4.40.. small, but it adds up! I think the original reply did it the right way.. correct me if i'm wrong!
SoonToBeMrsONeill
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Re: how to calculate real price per person?
Posted by CaseyCase
I know I'm confused is tax before or after service charge? Isn't service charge another name for gratuity which would mean no need to tip?
yes but check to see if your maitre'd is included... most places dont and you still have to pay anywhere from $2-6 per person to tip them
fdnybride163
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Re: how to calculate real price per person?
Posted by SoonToBeMrsONeill
Posted by CaseyCase
I know I'm confused is tax before or after service charge? Isn't service charge another name for gratuity which would mean no need to tip?
yes but check to see if your maitre'd is included... most places dont and you still have to pay anywhere from $2-6 per person to tip them
no if it is given directly to staff it is a gratuity, a service charge is how the rest of the salaried staff gets paid (most likely your BM and back of the house staff)
eternitybride
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Re: how to calculate real price per person?
most catering halls tax the service charge. Where if it was classified as a gratuity, it couldnt be taxed, they label it a service charge, which is.
So it would be
100 per person, 20% Service, 8.75% tax becomes
100* 20%=20
120*8.75%=10.50
Final cost per person= 130.50
fdnybride163
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Re: how to calculate real price per person?
also nassau/ suffolk county tax is 8.625 % but city and burrows are 8.75%
jenhef
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Re: how to calculate real price per person?
You have to be careful... sometimes the tax goes before gratuity and sometimes after... It seems like the places that list gratuity as a service charge tend to charge you after tax.
Check your contract.. it could make a difference of a few hundred dollars.
CaseyCase
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Re: how to calculate real price per person?
See I got a real cheap price but after service and tax it doesn't seem so great anymore I can't imagine how ppl justify spending upwards of 100 pp for a large party. It breaks the bank.
Moonmist09
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Re: how to calculate real price per person?
i believe the service charge is taxable
FutureWifey
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Re: how to calculate real price per person?
Pretty sure I have to pay
PP + Service Charge = Total + Tax = Whatever amount
+ $500 mait + Bridal Attendant (wasn't told to me at first)
I calculated it using this method:
100 * 1.2 = $120. * 1.08625 = 130.35 per person
adelz
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Re: how to calculate real price per person?
Our RH is adding the tax seperately and not on top of the gratuity - that way there's not additional tax being added on to gratuity. So I think it comes out to:
Per person x 20% + Per person x Tax (without gratuity)
= Total
AdriandSteve
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Re: how to calculate real price per person?
You are taxed on service charge.
itbroi805
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Re: how to calculate real price per person?
our invoice put the taxes and gratuity on the total, not per person, so check with the hall..
