As I looked over the contract with my RH today, we realized that we were charged tax on the 18% service charge. Is this typical? I can't see how charging tax on a service is right.
Thanks!
FFsBride
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Re: Tax and Service charges
Yes I think all RH's charge tax AFTER adding the 18% - it's such a ripoff!!!
jwleewedding
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Re: Tax and Service charges
yup, it's usually 18 - 20% dependent on your RH. the 18-20% service charge is for the busboys, waiters/waitresses, cooks, etc... the ppl you wouldn't normally tip.
HTH
The Cassie
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Re: Tax and Service charges
every place we've looked at has been 20%
be glad you got 18!
FutureJOC
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yup sounds about right
halfbaked
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Unfortunately, yes.
evita2781
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yup - ups the price per head so much!
jwleewedding
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Posted by The Cassie
every place we've looked at has been 20%
be glad you got 18!
really? i guess i should be happy with my 18% then... even at 18%.. i was complaining! lol... everything is starting to add up!!!
CantWait2Wed
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Rip off is right! It isnt a huge amount of money more but it just seems...wrong!
jwleewedding
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Posted by ekregan
Rip off is right! It isnt a huge amount of money more but it just seems...wrong!
yea... i feel like it's still considered gratuity.. which should be at OUR discretion.. not pre-determined! but what can we do? seems like it's a staple in this business.
Ang9483
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Yeh 18% is what I have been seeing also. Its annoying.
CantWait2Wed
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I don't mind the 18% so much. The fact that they charge sales tax on that that makes me a little unhappy. I guess we just have to deal with it!
lpk586
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I wondered the same exact thing! Doesn't seem fair/legit to charge sales tax on the service/food PLUS the gratuity. I work in retail and don't understand how they can charge sales tax on gratuity, but maybe there's something I just don't understand. *****.
adelya21
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Re: Tax and Service charges
Ye im 20% also boooo
Posted by The Cassie
every place we've looked at has been 20%
be glad you got 18!
Moonmist09
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yes, all RH charge the 18% service charge. no way getting around this one unfortunately or we LIW brides would have found a way!
jwleewedding
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Posted by ekregan
I don't mind the 18% so much. The fact that they charge sales tax on that that makes me a little unhappy. I guess we just have to deal with it!
i was just thinking about the same thing the other day! after i got my contract, i just couldn't wrap my head around why i was being charged tax on a service charge!
i was so tempted to argue this, but it seems to be the norm, so i just let it go...
Jesebelle
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Re: Tax and Service charges
Yes they can tax the service charge legally. It's not a gratuity, it's how they pay their staff (or how they are supposed to!). I found the info here, if you scroll down to where it says 'service charge' it's quite clear. http://www.tax.state.ny.us/pdf/memos/sales/m09_13s.pdf
kshea23
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yup. Every place I've looked at had the 18% tax & gratuity. It *****, but it is what it is
LauraluvsSean
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Re: Tax and Service charges
wait. im confused. are you saying there is a tax ON TOP of the 18% tax? I better read my RH contracts, then...because I got a quote for $ 75/pp but w/ the 18% - it came to about $91.50 pp.
So I need to add in 8.25% tax on top of the $91.50? is this how its calculated?
or is the 8.25% sales tax added on top of the total ? (assuming 91.50 X 75 guests $6862.50)?
is this right? which calculation is correct?
pipermaru
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Re: Tax and Service charges
Posted by LauraluvsSean
wait. im confused. are you saying there is a tax ON TOP of the 18% tax? I better read my RH contracts, then...because I got a quote for $ 75/pp but w/ the 18% - it came to about $91.50 pp.
So I need to add in 8.25% tax on top of the $91.50? is this how its calculated?
or is the 8.25% sales tax added on top of the total ? (assuming 91.50 X 75 guests $6862.50)?
is this right? which calculation is correct?
i believe you add tax + svce charge to get a total percentage, you aren't taxed on gratuity so it would be 26.25% on the $75 per person for $94.68 total
