i was talking to a guy @ work today (also panning a wedding) who said that it's illegal in NYS to charge sales tax on a service. i'm left questioning why i'm paying sales tax on my service charge for the RH, which i know is how most halls do it. anyone know anything about this???
MEMEJOR
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Re: taxing services
no this is the first i heard... they all do it
Alexandra1028
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Re: taxing services (repost from BHB)
It is illegal to charge tax on a service, but im assuming its the same as a resturant they are charging you on the food and you are tipping on the service.
ETA: same with photography, you are being charged on the photos/albums you receive, etc.
Mrs B to Be
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Re: taxing services (repost from BHB)
essentially when they draw up your bill they should be figuring your tax based on your price per person charge, and then the 20% gratuity charge gets applied afterwards
MRSin2009
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Re: taxing services (repost from BHB)
Not all places do that. The Watermill does not do that. It is pretty bad for a company to do that. Where I used to work we didnt do it either. Most of the time the 'service fee' doesnt actually go directlt to the staff I wouldnt look at it like a tip. It really goes into what the staff makes not a tip.
beram63
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Re: taxing services (repost from BHB)
Posted by Mrs B to Be
essentially when they draw up your bill they should be figuring your tax based on your price per person charge, and then the 20% gratuity charge gets applied afterwards
that's what it sounds like they should be doing, but that's not how they're doing it.
at first i was like, wait, they're taxing me on gratuity? i thought it'd be the way it is at a restaurant, where you pay tax on the food and the gratuity goes on top. in my contract, the service charge is figured in first, and they taxed me on the total for both. if it's illegal to collect sales tax on a service (i.e. 'service charge'), i don't get what loophole their using to do it this way.
