What is the 20% gratituty tax that we pay for...

Jayla127 Posted: Aug 23, 2007 02:38 AM

What is the 20% gratituty tax that we pay for...

in addition the sales tax. Where does that money go?

Ann 52409 Posted: Aug 23, 2007 07:51 AM

Re: What is the 20% gratituty tax that we pay for...

They way that I understand it from my reception hall is that the 20% service charge goes to tip the waitstaff, bartenders, valetparkers, coat check, etc. The only people it does not take care of is the Matre'd and the bridal assistant.
The tax is separate and I believe they tax 8.65% on to the total. i dont know if that makes sense.
Example: If your hall says $50.00 pp
$50.00pp X 20%= 10 so now that is 60.00pp

and I heard that if they call it service charge and not gratuity they can tax it so i dont know how true that is but,

$60.00pp X 8.65%tax = 5.19
So your grand total would be 65.19 pp not including Matre'd tip or bridal attendant tip.

Hope this wasn't confusing and I'm not sure of the exact percentage of the tip

FuTuRe MrS MaZz Posted: Aug 23, 2007 08:13 AM

Re: What is the 20% gratituty tax that we pay for...

Yeah... I had to laugh when they said they tax the 'service charge' its like a double whammy

mcclj74 Posted: Aug 23, 2007 08:23 AM

Re: What is the 20% gratituty tax that we pay for...

it certainly is a double whammy - no fair! lol

mdawg Posted: Aug 23, 2007 08:29 AM

Re: What is the 20% gratituty tax that we pay for...

just think though... 30 years ago weddings were like $8,000 at the most...so what will they be 30 years from now! yowza.

Ann 52409 Posted: Aug 23, 2007 08:36 AM

Re: What is the 20% gratituty tax that we pay for...

Posted by mdawg

just think though... 30 years ago weddings were like $8,000 at the most...so what will they be 30 years from now! yowza.

true... thats another reason I'm glad we locked in 2007 prices now

kabo0831 Posted: Aug 23, 2007 08:46 AM

Re: What is the 20% gratituty tax that we pay for...

Soontob is right for say im paying 64pp with tax and grat. mine comes out to 84.50pp. Wow geez thanks soontob i thought i was getting away cheap with 64 lo i hate paying taxes....

mcclj74 Posted: Aug 23, 2007 08:51 AM

Re: What is the 20% gratituty tax that we pay for...

geeze - with all the taxes and gratuities and all the extras the hall alone is going to be like 110 per person....and our original price started at 85.25

mishmosh328 Posted: Aug 23, 2007 09:02 AM

Re: What is the 20% gratituty tax that we pay for...

some reception halls dont tax the 'gratuity' so make sure you ask. i am pretty sure watermill doesnt

dazies1011 Posted: Aug 23, 2007 09:09 AM

Re: What is the 20% gratituty tax that we pay for...

Posted by Jayla127

in addition the sales tax. Where does that money go?

Some places do 18% but, it doesnt make much of a difference. They give this money to the captian and the wait staff. That is what we were told. Then you have to tip the Mat'd and the bridal attentand.
Don't forget if you are having your ceremony there they add that on the price as well.

egem523 Posted: Aug 23, 2007 11:57 AM

Re: What is the 20% gratituty tax that we pay for...

All restaurants charge 15-20% gratituty when you have a party over a certain amount. We are paying for the same thing at the hall.

mcclj74 Posted: Aug 23, 2007 11:58 AM

Re: What is the 20% gratituty tax that we pay for...

so then the gratuity should NOT be taxed if that it the basis - lol : ) your tip doesnt get taxed at a restaurant

FuTuRe MrS MaZz Posted: Aug 23, 2007 12:01 PM

Re: What is the 20% gratituty tax that we pay for...

Yeah but see, RH's labels the grat 'service charge' and its how they get around it... so tech not illegal.. if they said tips... that would be another story!

mcclj74 Posted: Aug 23, 2007 12:05 PM

Re: What is the 20% gratituty tax that we pay for...

this is true

MRSin2009 Posted: Aug 23, 2007 12:18 PM

Re: What is the 20% gratituty tax that we pay for...

I know where I am the 20% is more or less a setup fee and to pay for the servers, and setup crew for the event. The Banquet Manager usually gets another tip on top of that.

I think the 20% is NUTS!!!