does anyone know if you add the service charge and then the sales tax when figuring out the total of the price per person?!? My contract says the price + 20% grat + sales tax...doesnt that seem weird to be taxed on the service charge?
PreshusSmurf
Posted:
Member since
Re: Please help!!
I am pretty sure that this is the industry standard.
The 20% is a service charge, which is taxable ... and different from a 'tip' which is not taxable.
There's nothing you can do but accept it.
Sorry.
snowcat
Posted:
Member since
Re: Please help!!
Posted by PreshusSmurf
I am pretty sure that this is the industry standard.
The 20% is a service charge, which is taxable ... and different from a 'tip' which is not taxable.
There's nothing you can do but accept it.
Sorry.
Yup- usually the service charge is considered a 'salary' so it has to be taxed. If your contract said 20% gratuity that would be different.
