is it calculated before tips or after? i'm about to book a place, they're calculating it after tips...that's an extra few hundred bucks...
KimberlyScott
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Re: question on tax for RH
It should be calculated after the tip and only on the cost per person. The gratuity & tax are to be added to thatt total.
lanamanitta
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Re: question on tax for RH
My hall does the same, the per person price, 20% service charge per person, and THEN the tax. I don't think it's right, because you shouldn't tax on a tip or tip on tax, but the halls all seem to do it this way.
VenusS
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Re: question on tax for RH
sorry..bare with me i'm slow.. so say i have 50 ppl and each person cost $80. my total is $4000 before tips and tax. then i add 20% tips which is $800.
so now it is $4800 then tax is 8.375% = $5202 ??
coldasice217
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Re: question on tax for RH
Isn't tax 8.625?
Either way, the way you just did it is correct. First you add the gratuity, then tax that amount.
It's really double taxation...but they do it because they can!
PreshusSmurf
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Re: question on tax for RH
$80 per person + 20% service charge + 8.625% tax
the 'gratuity' can be taxed because it is a service charge, not a tip
