Tax & Service Fee???

How do RH figure this out. I really should know this, but I am definitely having a brain far*!!

Do they add the Service fee per plate and then the tax. Or do they add the tax first and then the service fee?

I would like to get an idea of what our 'balance' is before we meet with RH next month, to compare. Thanks ladies!

If it's a service fee, add that first, then figure out tax.

If it's a 'gratuity' add the tax first, then the gratuity.

Service fees are taxed, gratuities are not.

---

Posted by Lsorrent

If it's a service fee, add that first, then figure out tax.

If it's a 'gratuity' add the tax first, then the gratuity.

Service fees are taxed, gratuities are not.

---

nod.

Say its 65 per person, 20% service, and tax.

Then your final cost per person is:

65 plus 13 (20% service) =78
78*.0865=6.75

Total cost per person 84.75


If its a gratuity, then its

65*.0865=5.62
5.62+65= 70.62
70.62*.20=14.12

Total cost is 84.74


It may wind up around the same, depending on what your amount per person is

Thanks girls. I really should have known this!!

---

Posted by eternitybride

---

Posted by Lsorrent

If it's a service fee, add that first, then figure out tax.

If it's a 'gratuity' add the tax first, then the gratuity.

Service fees are taxed, gratuities are not.

---

nod.

Say its 65 per person, 20% service, and tax.

Then your final cost per person is:

65 plus 13 (20% service) =78
78*.0865=6.75

Total cost per person 84.75


If its a gratuity, then its

65*.0865=5.62
5.62+65= 70.62
70.62*.20=14.12

Total cost is 84.74


It may wind up around the same, depending on what your amount per person is

---

i think for the second example, the gratuity is based upon the untaxed amount so it would be:

65 * .0865 = 5.62 (the tax)
65 * .20 = 13

Total = 65 +13+5.62 = 83.62

BTW - I thought tax was 8.75%... doesn't matter for this excersize.