Question: Do I add sales tax or service charge first onto the price of the reception?
prncssrachel
Posted:
Member since
Question: Do I add sales tax or service charge first onto the price of the reception?
I'm trying to figure out about how much we're looking at after all is said and done. Thanks!
Nora101004
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
I believe you take the price of the hall add sales tax. Then take the price add the service charge. Then add it all together. Ex: Hall is 100, tax 8%, tip 18%: Hall 100 Tax 8 Tip 18 Total 126
I would make sure by either checking with the banquet managers or an accountant.
prncssrachel
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
Thanks!
jlm2004
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
Actually, I think it's the reverse but my place doesn't tax the service charge so I'm really lucky. This seems to be the biggest scam. The reason I think it is the reverse is that Carlyle on the Green said the tax on svc charge is state law and they are state owned so they had to.
The reason I am going to my parent's country club is that they said gratuity is never, ever expected since the service charge covers it (we will tip anyway and probably more becuase they told us not to!) They don't tax the service charge or calculate the service charge on the after tax amount.
By the way - service charges are definitely negotiable. One place said, 'If you want us to lower the service charge from 20% to 15 % we can but it won't be a lot.' huh? Of course I wanted them to do that. 5% on $30,000 is $1500!!! That's a lot to me!!! Didn't end up going there - but people seem to think this is set in stone
prncssrachel
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
Well, unfortunately, the contract is signed. When I calculated it the three different ways I could think of, there was a 1700 dollar difference! Um, HELLO! I NEED THAT 1700 bucks! But I will just have to give the a call and find out for sure. It's all so confusing.
butterfly20
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
im pretty sure that tax gets charged on the serive charge...
CathyB
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
Just like at a restaurant, you don't pay tax on tip. They are mutually exclusive.
jd414
Posted:
Member since
Re: Question: Do I add sales tax or service charge first onto the price of the reception?
Its not like at a restaurant at all. If its written in the contract as a gratuity it is not taxed, if its written as a service charge it can be legally (and usually is) taxed. Not to say that some catering halls dont do it their own way, but this is the norm.
