Hi All - I should know this, but just want to be sure. When you calculate the price per head including tax & tip....is the tip calculated on top of the base price + tax OR is it calculated on the base price alone....
i.e, if price per head is $100, tax is 8.65% and tip is 18% - is the final price per head $128.20 OR is it 126.25?? Thanks
Shorty McBride
Posted:
Member since
Re: Silly Question on Calculating Price Per Head??
depends - is the hall calling the 'tip' a SERVICE CHARGE, or a GRATUITY?
If its a service charge, the 18% is legally taxable.
If its a gratuity, the 18% cannot be taxed.
Just have to read your contract for wording.
Soon2BeMrsD
Posted:
Member since
Re: Silly Question on Calculating Price Per Head??
i believe it should be: 100x18%=18 100x8.35%=8.35 100+18=118+8.35=126.35 TOTAL= 126.35
HOWEVER some places tax the gratuity calling it a service charge so its 100x18%=?x8.35%
ask your hall which way they do it
LISA6569
Posted:
Member since
Re: Silly Question on Calculating Price Per Head??
I WOULD CALCULATE IT $100 X 26.65% = $ 126.65/PER HEAD
Meaghan729
Posted:
Member since
Re: Silly Question on Calculating Price Per Head??
Posted by LISA6569
I WOULD CALCULATE IT $100 X 26.65% = $ 126.65/PER HEAD
you can't add the rates together if they tax the service charge. This is the calc:
$100*1.18 = $118 then $118*1.0865 = $128.21
That is if your hall taxes the service charge.
LISA6569
Posted:
Member since
Re: Silly Question on Calculating Price Per Head??
Posted by Meaghan729
Posted by LISA6569
I WOULD CALCULATE IT $100 X 26.65% = $ 126.65/PER HEAD
you can't add the rates together if they tax the service charge. This is the calc:
$100*1.18 = $118 then $118*1.0865 = $128.21
That is if your hall taxes the service charge.
HMMMM...MY HALL CALLS IT A GRATUITY AND THIS IS HOW THEY FIGURED IT ON MY CONTRACT. I GUESS IT DEPENDS ON THE WORDING ON THE CONTRACT.
Meaghan729
Posted:
Member since
Re: Silly Question on Calculating Price Per Head??
If they call it a gratuity - I am pretty sure they can't tax it. If it is called a service charge (which my hall does) then you can. So if you take the pph and then calculate the grat/service charge, then take that amount and calc the tax, then you are taxing the service charge.
