Reception gratuity

I think there was a thread on this before, but I can't find it...

Say the RH quotes you $100 pp + 20% tax + 20% gratuity.

Is it $100 (plate) + $20 (tax) = $120 + $42 (gratuity) making it $162 pp?

OR

$100 (plate) + $20 (tax) + $20 (20% of $100 for gratuity) making it $140 pp?

it's $100(price pp) + $20(20% gratuity)= $120 + $9.90 ($120 x 8.25% sales tax)= 129.90

ow, it hurts looking at it.

Actually, the way you do it made it come out cheaper than my equations!

OK, so I guess I just have to remember to add the tax after the final headcount is figured out!

THANKS!

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Posted by CMS



Actually, the way you do it made it come out cheaper than my equations!

OK, so I guess I just have to remember to add the tax after the final headcount is figured out!

THANKS!

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I think the problem is that you had the wrong % for tax.

Tax is 8.625% in NY.

Gratuity is generally 18% - 20% depending on the hall. Your contract should state what this amount is.

Don't forget tips for the Maitre'D, Bridal Attendant, Valet Parking Attendant(s), Bartenders (unless you are allowing them to have a tip jar, we did not want that at our wedding), etc. ...

watermill charges 20% would you figure tax before or after the service charge?

Do not pay tax on the gratuity.

$100 x 20% gratituity = $20
$100 x 8.625% = $8.62

$100 + $20 + $8.62 = $128.62

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Posted by sazzykat

Do not pay tax on the gratuity.

$100 x 20% gratituity = $20
$100 x 8.625% = $8.62

$100 + $20 + $8.62 = $128.62

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Sorry to break it to you, but most halls do charge tax on the gratuity.

I would fight that. As it is gratuities run about $5000 - $6000. I have never head of paying tax on gratituity. At a restaurant, hair salon, etc.

Be careful of that because that could cost you another $500.

yes, my hall charges tax on top of grat which is just crazy

Pay the gratitutity in cash.

I would seriously call around and look into this.

NEGOTIATE. They do not pay tax on tips. That is suppose to go to the servers as part of their income.

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Posted by sazzykat

Pay the gratitutity in cash.

I would seriously call around and look into this.

NEGOTIATE. They do not pay tax on tips. That is suppose to go to the servers as part of their income.

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They can charge tax because they dont call it tips, they call it service charge and they can tax that.

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Posted by sazzykat

Pay the gratitutity in cash.

I would seriously call around and look into this.

NEGOTIATE. They do not pay tax on tips. That is suppose to go to the servers as part of their income.

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For the most part, the gratuity or service charge is NOT part of the servers income; it used to be, at least a few years ago when I worked in catering. Now, the staff is paid a set 'shift pay' ($10-25 per hour) and the gratuity or service charge goes to the house to cover what they consider the expense of 'setting up' for your wedding. I don't necessarily agree with that though...I remember when working in catering at the Milleridge Inn was far more lucrative, because we got the gratuity as our tip, and sometimes that was a lot of $$$ (I didn't work weddings though, only smaller events).

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Posted by PreshusSmurf

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Posted by sazzykat

Do not pay tax on the gratuity.

$100 x 20% gratituity = $20
$100 x 8.625% = $8.62

$100 + $20 + $8.62 = $128.62

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Sorry to break it to you, but most halls do charge tax on the gratuity.

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She's right . . . they charge the tax after the service charge, which they don't call gratuity. The only gratuity is given to the Maitre'D, which is expected to be $2-3 per person, cash, night of event.

It's a racket!

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Posted by lanamanitta

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Posted by PreshusSmurf

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Posted by sazzykat

Do not pay tax on the gratuity.

$100 x 20% gratituity = $20
$100 x 8.625% = $8.62

$100 + $20 + $8.62 = $128.62

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Sorry to break it to you, but most halls do charge tax on the gratuity.

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She's right . . . they charge the tax after the service charge, which they don't call gratuity. The only gratuity is given to the Maitre'D, which is expected to be $2-3 per person, cash, night of event.

It's a racket!

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And, at some halls, its recommended $3 - $5 per person.