Does anyone know? Our venue charges the price pp, a 21% service charge, and 6% PA sales tax.
I was under the impression that this meant the following:
$10,000 total venue cost (this is just an example)
+ $2,100 (service charge)
+ $600 (tax)
------------------
$12,700
The coordinator at the venue is telling us this:
$10,000 total venue cost
+ $2,100 (service charge)
------------------
$12,100
+ $726 (tax)
------------------
$12,826
I was under the impression that the service charge would not be taxable, but we're being told that it is.