re: 9 days and I'm losing it!- HELP!!!

rizzojojo Posted: Sep 23, 2004 01:55 PM

re: 9 days and I'm losing it!- HELP!!!

Has anyone heard of the catering hall charging tax ontop of the gratuity?????????

LuvMyMichael Posted: Sep 23, 2004 01:56 PM

Re: re: 9 days and I'm losing it!

Try to be calm....This is so exciting! Congrats & Good Luck!

rizzojojo Posted: Sep 23, 2004 02:11 PM

Re: re: 9 days and I'm losing it!

Thank you so much

slwh2005 Posted: Sep 23, 2004 02:12 PM

Re: re: 9 days and I'm losing it!

I heard about them charging gratuity on the price including tax!!! That is wrong!! Then you're tipping them for tax. How is that a service I wonder?

LuvMyMichael Posted: Sep 23, 2004 02:13 PM

Re: re: 9 days and I'm losing it!

Whaaaaaaaaaatttt? I din't know that. Can they really do that?

JRG71 Posted: Sep 23, 2004 02:14 PM

Re: re: 9 days and I'm losing it!

All halls charge NY state tax & gratuity.

rizzojojo Posted: Sep 23, 2004 02:16 PM

Re: re: 9 days and I'm losing it!

THATS WHAT THEY ARE DOING- I SAID YOU ARE TAXING THE TIP AND THEY SAID YES AND I WAS IN SUCH SHOCK I HAD TO ASK AGAIN AND THEY SAID YES WE TAX ONTOP OF THE TIP
I KNOW THEIR IS TAX AND TIP BUT NOT TAX ONTOP OF THE TIP

belleboyd Posted: Sep 23, 2004 02:16 PM

Re: re: 9 days and I'm losing it!

Thats robbery!
The tax should be on the cost of the hall
NOT the hall + gratuity!!! Gratuity is a 'tip' fer cryin out loud. Do they tax on the tip in a regular restaurant??

Sheesh!

Don't let them get away with it -- whoever it is!
They are NOT sending that $$ to the IRS!!!

salsbride06 Posted: Sep 23, 2004 02:17 PM

Re: re: 9 days and I'm losing it!

they are NOT allowed to charge you tax on gratuity. the dont put tax on the tip that you give a waitress at a resturant correct????? that is what i was told by someone i know that ownes a business. its taxed on the items only that you are paying for not the tip.

JRG71 Posted: Sep 23, 2004 02:18 PM

Re: re: 9 days and I'm losing it!

rizzojojo - I'm pretty sure that all halls do that. I questioned it too and there is a reason behind it, but I forget...

I edited this to say that maybe I'm wrong, but I don't think so.....

MsKitty1274 Posted: Sep 23, 2004 02:18 PM

Re: re: 9 days and I'm losing it!

Hmmm. I think it comes out the same, unless I am missing something..
Example A
55.00 per person + 18% (9.90) + 8.75% (5.68) = 70.58

Example B
55.00 per person + 8.75% (4.81) + 18% (10.77) = 70.58

The same. Why worry?

katone Posted: Sep 23, 2004 02:20 PM

Re: re: 9 days and I'm losing it!

The law in NYS is that tax is applicable on provided services (materials like food, use of space etc). Usually you don't get taxed for labor only, but the loop hole is that if services and labor are billed together they are taxed as a whole.

Janine24 Posted: Sep 23, 2004 02:23 PM

Re: re: 9 days and I'm losing it!

cateering halls charge you tax on everything that they can...

slwh2005 Posted: Sep 23, 2004 02:24 PM

Re: re: 9 days and I'm losing it!

Posted by MsKitty1274

Hmmm. I think it comes out the same, unless I am missing something..
Example A
55.00 per person + 18% (9.90) + 8.75% (5.68) = 70.58

Example B
55.00 per person + 8.75% (4.81) + 18% (10.77) = 70.58

The same. Why worry?

I think it goes like this:
55.00 per person + 8.75 % (5.68)= 60.78 + 18% (10.92)= 71.70

That's abig difference when you have 200+ people. IMO

rizzojojo Posted: Sep 23, 2004 02:28 PM

Re: re: 9 days and I'm losing it!

I KNOW THIS IS CRAZY ITS ONLY A DIFFERENCE OF 95.00 BUT ITS THE POINT AND THEY (VERDI'S OF WESTBURY) SAID THEY TAX OVER THE FINAL TOTAL WHICH INCLUDING THE 18% GRATUITY
SLW2005 YOUR RIGHT THAT IS THE WAY THEY ARE DOING IT AND X'S IT BY SOMANY ALOT OF PEOPLE COULD GET SCREWED

HearzBellz Posted: Sep 23, 2004 03:32 PM

Re: re: 9 days and I'm losing it!- HELP!!!

Posted by JRG71

rizzojojo - I'm pretty sure that all halls do that. I questioned it too and there is a reason behind it, but I forget...

I edited this to say that maybe I'm wrong, but I don't think so.....

My hall did not do this, but many do, even though they shouldn't. Ther is some *grey area* in the law that they can use as a loophole.

If you pay, for example $100 per plate, then the tax per plate would be $8.75, and the Gratuity would be $20 per plate, making the total per plate $128.75 per plate. (assuming a 20% gratuity here).

If you do it that way they are suggesting, it comes out to $130.50 per plate...thats quite a difference as far as I'm concerned.

Good luck

Stacey04 Posted: Sep 23, 2004 03:36 PM

Re: re: 9 days and I'm losing it!- HELP!!!

It was explained to me that it is not a 'tip'. You are paying for a service. The gratutity they charge pays the waiters and bartenders that work your party.

That is why is can be taxed, its not a tip its a service.

Even though I understand, I still do not think its fair

I think most halls do it that way.

DCSAAB06 Posted: Sep 23, 2004 04:26 PM

Re: re: 9 days and I'm losing it!- HELP!!!

I was given the tax plus gratuity deal as well and basically to make it easier I was told to add 26.75%(to be exact) to price pp.

I dont think its too fair either
Oh well, we pretty much all have no choice but to pay it.

MsKitty1274 Posted: Sep 23, 2004 05:01 PM

Re: re: 9 days and I'm losing it!- HELP!!!

Posted by slwh2005

I think it goes like this:
55.00 per person + 8.75 % (5.68)= 60.78 + 18% (10.92)= 71.70

That's abig difference when you have 200+ people. IMO

Um, can you explain the difference? How did you get the 5.68 for the 8/75% tax? Isn't 55.00 x .0875= 4.8125 ? Please explain, I am confused. Thanks