Tax and Tip for your reception hall

msabla1 Posted: Apr 23, 2008 01:18 PM

Tax and Tip for your reception hall

Is anyone out there being told that they have to pay tax on the staff Gratuities or Service charges?

I thought you are just taxed on the price per head & service charge (tip) added later.

Just curious & sounds kind of odd.

bjtheroux Posted: Apr 23, 2008 01:20 PM

Re: Tax and Tip for your reception hall

That doesn't sound right, it should be just tax on the price per head, is your RH hall telling you different?

msabla1 Posted: Apr 23, 2008 01:23 PM

Re: Tax and Tip for your reception hall

Yes, tax on everything

MJDoc12 Posted: Apr 23, 2008 01:38 PM

Re: Tax and Tip for your reception hall

just about every single RH does tax on both the price per head and gratuity. the reason they can put it on the gratuity is that they usually word it as a 'Service Charge' on your RH contract.

smplynluv Posted: Apr 23, 2008 01:43 PM

Re: Tax and Tip for your reception hall

I think i'm paying it separate... our maitre d said we are paying tax at about 7% plus tip at 20%. He added them together and said that we'd be paying 27% on top of the price per head. For example, If i were paying $100 a head, I'd really be paying $127 per head in the end. So, if I'm understanding correctly, i'm paying separate.