Tax on Gratuity?

Latrice Posted: Jul 24, 2005 09:30 AM

Tax on Gratuity?

Good morning,

I know this has ben posted before. But I just dont understand how a hall can tax the gratuity. It just doesnt seem right.

Are you ladies encountering the same problem? Is this legal?

aok2000 Posted: Jul 24, 2005 09:50 AM

Re: Tax on Gratuity?

I could be wrong, but I think I remember a post a while ago where someone said they CANNOT tax on gratuity. My hall didn't and I don't think they are allowed to. If I can find the post I will bump it for you.

Yeah, I just looked- they cannot tax gratuity- they can, however, tax their service charge

Latrice Posted: Jul 24, 2005 09:56 AM

Re: Tax on Gratuity?

Posted by aok2000

I could be wrong, but I think I remember a post a while ago where someone said they CANNOT tax on gratuity. My hall didn't and I don't think they are allowed to. If I can find the post I will bump it for you.

Yeah, I just looked- they cannot tax gratuity- they can, however, tax their service charge

Wow. Thanx. I will make a phone call to RH today.

This may be a stupid question but what is the service charge? Is that different than the gratuity?

aok2000 Posted: Jul 24, 2005 10:22 AM

Re: Tax on Gratuity?

I've never been exactly sure what the service charge is (setting up, cleaning up, etc...), but it is different than the gratuity- the service charge is usually like 18%.

Latrice Posted: Jul 24, 2005 10:32 AM

Re: Tax on Gratuity?

O. i thought that was the 18% gratuity...

Thank you. I have to call the hall!

aok2000 Posted: Jul 24, 2005 10:33 AM

Re: Tax on Gratuity?

The Gratuity may be about the same %

Love_my_Freddybear Posted: Jul 24, 2005 11:08 AM

Re: Tax on Gratuity?

As far as I am concerned it is the price per head PLUS TAX and 18% GRAT! And that's how you get your final price per head.

And if it's not I'll be pissed off!!!!

FTRBRIDE Posted: Jul 24, 2005 11:44 AM

Re: Tax on Gratuity?

Posted by Latrice

Good morning,

I know this has ben posted before. But I just dont understand how a hall can tax the gratuity. It just doesnt seem right.

Are you ladies encountering the same problem? Is this legal?

If they call it a 'service charge' they are allowed to tax it. If they call it a 'gratuity' they cannot. Read your contract to see what they call it.

Mrs. dleeny Posted: Jul 24, 2005 11:46 AM

Re: Tax on Gratuity?

some halls say it's a 'service charge'... so that they CAN tax you on it!

doesn't make any sense! It's not like the tax is theirs to keep.

FTRBRIDE Posted: Jul 24, 2005 11:56 AM

Re: Tax on Gratuity?

Posted by dleeny

some halls say it's a 'service charge'... so that they CAN tax you on it!

doesn't make any sense! It's not like the tax is theirs to keep.

I believe (but I'm not 100% sure) that they pay a lower rate of tax out on a 'service charge' than on a 'gratuity'. (I'm not a CPA though, so don't quote me on that)

SummerBride06 Posted: Jul 24, 2005 02:28 PM

Re: Tax on Gratuity?

does anyone know what westbury manor considers it?

Latrice Posted: Jul 24, 2005 11:18 PM

Re: Tax on Gratuity?

Thanx ladies.

Yes, my contract does in fact say 18% service charge and according to my BM, they can tax that.

And at the bottom of my contract are the recommended amount for gratuities for the MD and 2 bridal assistants that they provide

PegaLega Posted: Jul 25, 2005 01:30 AM

Re: Tax on Gratuity?

I wonder if the contract has changed.
My contract doesnt have that? They did tax meon the 18% which in real terms is gratuity. We asked about the tipping b/c we had been to a wedding and saw a few things going on that we didnt like. He said that unless we felt that someone did a superb job and deserved a tip it was not expected. HTH

Sorry to jump on your board ladies...