Looking over contract

hsacks23r Posted: Oct 07, 2005 11:42 AM

Looking over contract

It states all prices subject to a 8.75% NYS sales tax and 18% service charge-= what is the service charge for doing the service-- istn't that what the $$$ is for ???????
do I add the 18% on the total all ready w/tax or w/out???

MayBride06 Posted: Oct 07, 2005 11:43 AM

Re: Looking over contract

The sales tax has changed. they should adjust it accordingly!

sarahthegreat Posted: Oct 07, 2005 11:44 AM

Re: Looking over contract

i believe you add the service charge after you add the tax...for example, we are paying $62 a head + tax and gratituity...it comes out to $77 a head

hsacks23r Posted: Oct 07, 2005 11:44 AM

Re: Looking over contract

Posted by MayBride06

The sales tax has changed. they should adjust it accordingly!

to % 8.625

Magicgrl21 Posted: Oct 07, 2005 12:16 PM

Re: Looking over contract

Why should the service charge be added after the tax? It should be figured out with the original figure before tax. Thats BS.

ChrissynRicky Posted: Oct 07, 2005 12:18 PM

Re: Looking over contract

Posted by Magicgrl21

Why should the service charge be added after the tax? It should be figured out with the original figure before tax. Thats BS.

That's how it's done at a restaurant.

The Service is not taxableitem and has to be added in AFTER TAX.

soontobemrsc Posted: Oct 07, 2005 12:19 PM

Re: Looking over contract

I discovered that in mine too...after we signed and gave a deposit. They are charging us the per her price, plus the 'service charge' plus the tax. Which means you pay more tax because it is applied to both the per head price and the 'service charge'. I tried to fight it and they told me that it is not a gratuity, it is a service fee which is subject to tax. I think it's a technicallity and its bullsh*t. But what could we do? We just had to accept it.

ChrissynRicky Posted: Oct 07, 2005 12:21 PM

Re: Looking over contract

Posted by soontobemrsc

I discovered that in mine too...after we signed and gave a deposit. They are charging us the per her price, plus the 'service charge' plus the tax. Which means you pay more tax because it is applied to both the per head price and the 'service charge'. I tried to fight it and they told me that it is not a gratuity, it is a service fee which is subject to tax. I think it's a technicallity and its bullsh*t. But what could we do? We just had to accept it.

I'm going to look this up for you....be back in a bit....You should not be paying tax on 'service' only tax on 'goods'

ML110 Posted: Oct 07, 2005 12:52 PM

Re: Looking over contract

welcome to the wonderful world of weddings... they will try to milk every dime... i just think the whole service charge thing is BS... thats what you're paying ther price per person for!! and the worst part is that at many halls, the servers/employees don't see much if any of that 'service' charge, AND the hall has 'recommended' tips for the maitre d on top of the service charge!
every time i thnk about it, i'm DEFINITLY in the wrong business!!!

ayadali Posted: Oct 07, 2005 12:58 PM

Re: Looking over contract

At Westbury Manor you pay the amount PP times 18% service times 8.0625% tax - so essentially you pay tax on the service which works out to more $$$$$ than if you pay tax and then service.

You should check with you hall on the details b/c each place is different.

marymoon Posted: Oct 07, 2005 01:19 PM

Re: Looking over contract

I think this *****, but they get away with it. You ay for the service in your pp price, then you pay a service charge or 18% and then you're expected to tip on top of that. It's highway robbery..but I guess it's just something you ave to consider when booking. Just know it's gonna go up. I am afraid to add it up, but I think the tax and grat bring us to over $150 pp. I'm afraid to do the math..so I won't for now

LuvMyFH Posted: Oct 07, 2005 01:45 PM

Re: Looking over contract

YEs, all catering halls do it. You get a price pp head and then usually add the gratuity between 18-20% then add the tax and that's your price!

soontobemrsc Posted: Oct 07, 2005 01:58 PM

Re: Looking over contract

I agree it's total BS. My FH totally flipped when he found out. They must get this all the time. Because I called the banquet mgr and she faxed me some legal-schmegal thing that says in NY it is allowed to charge tax on a service fee but not a gratuity. That's why they call it a service fee. Trust me, we're not happy about it. Also, they told us we had to pay in cash but that they would not waive the tax. HELLO! Then what's the point of cash? As*holes. But what can I do? I can't be nasty to them..they have control over my wedding.

hsacks23r Posted: Oct 07, 2005 04:11 PM

Re: Looking over contract

Posted by ChristineAE

Posted by soontobemrsc

I discovered that in mine too...after we signed and gave a deposit. They are charging us the per her price, plus the 'service charge' plus the tax. Which means you pay more tax because it is applied to both the per head price and the 'service charge'. I tried to fight it and they told me that it is not a gratuity, it is a service fee which is subject to tax. I think it's a technicallity and its bullsh*t. But what could we do? We just had to accept it.

I'm going to look this up for you....be back in a bit....You should not be paying tax on 'service' only tax on 'goods'

thanks let us know what you find out :)

gNi1125 Posted: Oct 07, 2005 04:54 PM

Re: Looking over contract

You pay tax on the service charge. So it should be:

$xx +18% service charge + tax

Unfortunately since it's a service charge you pay tax on it. If it were a gratuity you wouldn't.

Debra7/21 Posted: Oct 07, 2005 05:39 PM

Re: Looking over contract

does anyone know how much has tax gone down to?

FrogGirl0917 Posted: Oct 08, 2005 01:17 AM

Re: Looking over contract

klingklang77 Posted: Oct 08, 2005 02:05 AM

Re: Looking over contract

Posted by soontobemrsc
Also, they told us we had to pay in cash but that they would not waive the tax. HELLO! Then what's the point of cash?

You would think that because you are paying cash that you should not have to pay the tax. But the catering place has to report it on their tax return (whether or not they do is a different story), so they have to charge tax. If you were to pay with credit card, then the credit card company charges them a fee, about 2%, so they want the cash so they dont have to pay that fee.