Taxing gratuity

I am sure this has been asked plenty of times before but Im asking again.

Do the RH tax the gratuity??
How does it all work??
We have to make our first BIG payment next month so I am just wondering how they do it.


THANKS

they can tax the gratuity, as long as they DON'T call it a 'gratuity'. they get around it by stating it's a 'Service Charge'

they tax it based on the price you pay per person. so if they tax the grat, it goes like this:


$100.00 per person x 18% = $ 118.00 per person
$118.00 x 8.65%= $10.27
$118 + $10.27- $128.27

if they don't tax the grat:

$100.00 x 18% = $118
$ 100.00 x 8.65% = $8.65

Total: $118 + $8.65 = $ 126.65

(i'm using what i think is suffolk county tax)


make sure you sit down with your BM at the hall and have them break it down for you.

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Posted by MJDoc12

they can tax the gratuity, as long as they DON'T call it a 'gratuity'. they get around it by stating it's a 'Service Charge'

they tax it based on the price you pay per person. so if they tax the grat, it goes like this:


$100.00 per person x 18% = $ 118.00 per person
$118.00 x 8.65%= $10.27
$118 + $10.27- $128.27

if they don't tax the grat:

$100.00 x 18% = $118
$ 100.00 x 8.65% = $8.65

Total: $118 + $8.65 = $ 126.65

(i'm using what i think is suffolk county tax)


make sure you sit down with your BM at the hall and have them break it down for you.

---

yup! and most are 'smart enough' to call it a service charge these days!

the gratuity is not taxed the 8.65% so I would definitely go with the smaller amount of 126.65

tha'ts the same when you're tipping at a restaurant, don't add tip to the amount + tax.