Important: Has Anyone Try To Fight Taxing Of Service Charge?
eden
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Important: Has Anyone Try To Fight Taxing Of Service Charge?
Reception halls are really ripping us off when they tax our gratuity/service charge. Arent they?
Ie. they calculate this way per person cost:
$85pp X 1.18 X 1.08625 = $108.95
when it should be done this way: $85/person + (85*.18) + (85 * 0.08625) = 85 + 15.30 grat + 7.33 tax = 107.63
Has anyone tried to fight this with their hall and if so, what's the result?
Thanks!
neener1211
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Re: Important: Has Anyone Try To Fight Taxing Of Service Charge?
i think they can legally charge tax on the service charge...however, it is illegal to charge tax on the gratuity.
Audreygirl
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Re: Important: Has Anyone Try To Fight Taxing Of Service Charge?
Posted by neener1211
i think they can legally charge tax on the service charge...however, it is illegal to charge tax on the gratuity.
Yep - service charge is a loophole!
eden
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Re: Important: Has Anyone Try To Fight Taxing Of Service Charge?
Isn't it annoying for them to do this? I mean when you dine out do you guys tip your waiters based on the total amount after tax or before tax?
I do it before tax although I usually tip above 15%, it's still upsetting for halls to make additional money out of us this way.
giggles62
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Re: Important: Has Anyone Try To Fight Taxing Of Service Charge?
It's a loop hole that's why they call it a service charge and not a gratuity. It really sux!!!!
CLMon7906
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Re: Important: Has Anyone Try To Fight Taxing Of Service Charge?
Posted by eden
Isn't it annoying for them to do this? I mean when you dine out do you guys tip your waiters based on the total amount after tax or before tax?
I do it before tax although I usually tip above 15%, it's still upsetting for halls to make additional money out of us this way.
I always tip after the tax b/c when i worked as a waitress, some places made you claim tips based on taxed-totals and that can add up to well over $100 on a decent day and therefore alter what a waiter has to claim drastically. [there's a percentage of their sales they must claim to appease the IRS so that it appears they are claiming 100% of their tips]
they just add up the whole tab and then add the tax, so to them adding in the gratuity...i mean 'service charge' and then taxing it is no big deal.
