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
Posted:
Member since
Re: Tax and Service charges
Whether u calculate the tax on the per person count or on the total price doesn't matter it should come to the same thing as long as you already added the 18%-20% service charge onto your base price. So you will be taxed on the $91.50 pp amount. Or you could calculate tax on the total price as (75 guests x $75 x 1.18 to add svc charge x 1.0825 to add tax on total)
HTH!
LadyDuda81509
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Re: Tax and Service charges
yup thats right it sounds better for them when they say this is the price...+ tax and gratuities...
Jna2010
Posted:
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Re: Tax and Service charges
yup thats normal, mines 20%, its usually either 18 or 20
GlitterBox24
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Re: Tax and Service charges
My total price only works out when i do the 20% on the total amount (PPxAmount of ppl) then i do the Tax on the original PPxAmount of people and add it all up. If i tax it after i add in the 20% its alot over that amount the gave me
