tax and gratuity Q

Im sure this question has been asked 1000 times, but for some reason I always miss it. Anyways, FYI Im cut and pasting this in the 2012 section as well. Onto the question...

Say a reception hall is $100 pp and 20% gratuity. Do the places put tax and gratuity on that $100 ($8.75 and $20) making the real price $128.74 pp.

or

Is it $100 pp, then the ($8.75 tax) then is the $108.75 gratutitized ($21.75 = 20% of 108.75) making the total price of $130.50 pp.

or

Is it $100 pp, then the 20% gratuity. Then is the $120 taxed ($10.50 = .875% of 120), making the final price $130.50.

well, I guess 2 and 3 come out to the same thing
, but what about 1 vs 2.

Thank you for your help.

i am so gla d you asked because it is on my list to ask the catering hall.. it seems like they do put the grat on top of the tax..which to me is just wrong,.. but it did come out that way when i added it up

will let you know when i get a response to this question. i guess it is standard practice for them to do ....esp if you do not ask!

It's 20% of the total of everything.
Example:
100 guests at $100pp = $10,000 plus 20%= $12,000

So in reality, $100pp is really $120pp with tax & tip

It's insane.

107 went up to almost 150pp with everything

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Posted by Royalgem21


It's 20% of the total of everything.
Example:
100 guests at $100pp = $10,000 plus 20%= $12,000

So in reality, $100pp is really $120pp with tax & tip

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I don't think that this calculation includes the tax.

At my hall its tax and 20% gratuity so this is how I did it:

$100*8.625% tax=$9 tax
$100*20% grat=$120

Total = $100+$9+$20 = $129pp

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Posted by chliekm

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Posted by Royalgem21


It's 20% of the total of everything.
Example:
100 guests at $100pp = $10,000 plus 20%= $12,000

So in reality, $100pp is really $120pp with tax & tip

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I don't think that this calculation includes the tax.

At my hall its tax and 20% gratuity so this is how I did it:

$100*8.625% tax=$9 tax
$100*20% grat=$120

Total = $100+$9+$20 = $129pp

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I just visited my venue and found out that I was wrong and yes, tax is separate.

However, it was told to me that the tax is added on to the surcharge also. So your total bill plus 20% and then 8.25% tax is added.

Yikes!

Most places tax on gratuity.

So..if you are getting quoted 100 dollars:

100+tax=108.75

108.75 x 0.2 (20%) =21.75

108.75+21.75=130.5

Bottom line--they screw you.

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Posted by SummerBeauty

Most places tax on gratuity.

So..if you are getting quoted 100 dollars:

100+tax=108.75

108.75 x 0.2 (20%) =21.75

108.75+21.75=130.5

Bottom line--they screw you.

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LOL! That made me laugh.

How confusing. I wish they would just work out total price ahead of time so that we wouldn't have to think about it and just speculate. Now I'm off to look at my contract to see if it has a svc charge or gratuity etc etc.