What is the difference between 'service charge' and 'gratuity'?
sarahradio5
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What is the difference between 'service charge' and 'gratuity'?
My contract says 'subject to a 20% service charge'.
What's the difference between that and 'gratuity?'
sr081906
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Re: What is the difference between 'service charge' and 'gratuity'?
I am not sure. Did you ask you hall what it includes?
sarahradio5
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Re: What is the difference between 'service charge' and 'gratuity'?
I just thought I read here somewhere that a service charge is allowed to be taxed and gratuity isn't. If a reception site calls their gratuity a 'service charge', they can tax it... it not, they can't. Of course, mine did.
LaurenluvsTJ
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Re: What is the difference between 'service charge' and 'gratuity'?
it means they are trying to find ways to charge you more money.
sarahradio5
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Re: What is the difference between 'service charge' and 'gratuity'?
Posted by LaurenluvsTJ
it means they are trying to find ways to charge you more money.
exactly... PLUS my place EXPECTS an extra $1200 tip the day of!!!
IslandPrincess
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Re: What is the difference between 'service charge' and 'gratuity'?
Posted by sarahradio5
Posted by LaurenluvsTJ
it means they are trying to find ways to charge you more money.
exactly... PLUS my place EXPECTS an extra $1200 tip the day of!!!
It *****, I have NO Idea how much to tip anybody because of all that
October Bliss
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Re: What is the difference between 'service charge' and 'gratuity'?
Posted by sarahradio5
My contract says 'subject to a 20% service charge'.
What's the difference between that and 'gratuity?'
NOTHING except for the sales tax. I don't think there are any halls left that use the word gratutity because they all know you can't tax a gratuity but you can tax a 'service charge' so that's what it is called.
As for tipping on top of that - take care of the Maitre' d, and the bridal attendant.
sarahradio5
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Re: What is the difference between 'service charge' and 'gratuity'?
Just a question...
what on EARTH does the reception site get out US having to pay more sales tax?!!?!?!?!?
seriously? THEY don't get that money? Why don't they just CALL it gratuity, and save us a few hundred bucks?!!?!?!?!?!
Tatum&Steve
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Re: What is the difference between 'service charge' and 'gratuity'?
I was told the 'Service Charge' covers the salary for employees setting up, working, and breaking down event.
Meaghan729
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Re: What is the difference between 'service charge' and 'gratuity'?
i think for accounting purposes it helps them in the end if they call it a service charge - even though the additional tax revenue doesnt go to them, they probably pay lower corporate taxes in the end or something.
Bigbroad555
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Re: What is the difference between 'service charge' and 'gratuity'?
Service Charge is another way of saying Tip but with tax.....
I rechecked this with John at Verdi's when I was placing the deposit and I asked him 'I see this service charge of 5**.** that means no tipping that night ?'
He replied 'No'
Also with the Limo a sevice charge which is the tip I also asked if there was any tipping and the reply I got was NO it is already included with the service charge.
So if any of your contracts have the wording 'Service Charge' do not give any TIPS at the end of the night 'Service Charge' means TIP but taxed..
