I know I remember seeing a post about this before but I can't find it. How do the RH's determine gratuity? Is it added to the total bill before tax or after? If its before tax do they then tax the gratutiy. For example is this how they do it?
$10,000 (RH bill) x 20% (gratuity) = $2,000 gratuity
TOTAL = $12,875
Sorry if i just made it more confusing, but I'm just trying to get a rough estimate. TIA
halfbaked
Posted:
Member since
Re: How to determine RH Gratuity (so confused)
I'm 99% positive that they include tax on the gratuity, just to screw you out of a couple hundred extra dollars.
FutureJOC
Posted:
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Re: How to determine RH Gratuity (so confused)
it's the first one.
Lsorrent
Posted:
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Re: How to determine RH Gratuity (so confused)
If they call it a service charge, then it's the first one.
If they call it gratuity, then it's the second one.
They are allowed to tax a service charge, but they can't tax gratuity.
jlt2010
Posted:
Member since
Re: How to determine RH Gratuity (so confused)
when i was visiting venues, each one told me a different thing. Some charge tax on the service charge, some don't. I would call up your RH and ask to make sure.
Angel06
Posted:
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Re: How to determine RH Gratuity (so confused)
Every RH i went to charge tax on the service charge.
FutureMrsSe
Posted:
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Re: How to determine RH Gratuity (so confused)
My Hall is charging me a service charge and taxing it. Why do they do that? Are they allowed to do that? Do they really report it to the IRS?
Lsorrent
Posted:
Member since
Re: How to determine RH Gratuity (so confused)
Posted by FutureMrsSe
My Hall is charging me a service charge and taxing it. Why do they do that? Are they allowed to do that? Do they really report it to the IRS?
Yes, because it's a service charge and not a gratuity. That's how they get away with taxing it. Most RH's do this.
