Service Charge Question

AbeandCarrie

So I was looking over my final catering bill today and I noticed that the service charge was included in the subtotal and I am then taxed on the subtotal amount to give me my final total. 

When I worked in the restaurant industry the service charge was always a tip for the server, and tips were never taxed directly on the guest's bill.  Is it odd that i am being taxed on the service charge?  It only comes out to be about $15 but when you are on a budget every penny counts!

TIA!

acaponi87

This may depend on individual states.

For what it's worth mine was not taxed. We had our base price per person and then the service charge and tax were separate but based on the original price. Hopefully this makes sense.

$63 per person
18% service charge-- 63 X .18= 11.34
.06 sales tax---63 X .06= 3.78

63+11.34+3.78 = $78.12 per person

daria24

It depends on the state, and what the service tax covers. In PA, the service charge is taxable, because it isn't considered "gratuity" by the venue. It was actually written into my venue contract that there is a "taxable 20% service fee".

janeash

Ours is charging us tax on the service charge.  Rip off considering our service charge is 21% so it's already a huge chunk of change!

UKgal321

We don't have a service charge ours flat out says gratuity which is untaxed added to the total.  Check on local laws...I'm sure it's just a google away.  If you think it's wrong contact the caterer. 

k3MySailor

I know mine will be taxed, but that is probably just due to CT taxing everything these days. I am really mad that they tax at the salaon now That is really going to add up getting ready for the wedding.

whifflegirl

Ours is taxed because their service charge is not the same as the gratuity.  As I was told, the service charge is their cost of doing business as a caterer, such as gas in the vehicles, etc., the rental fee is for us to use their space (for the venue itself), and the gratuity is a tip to the service staff.  Our actual gratuity will not be taxed and will only be based upon our food costs.

MiksChick23

I noticed you are listed as Minneapolis/St Paul, as am I...but I live in Wisco where state law requires they tax service charges. Gratuity may not be included, I would speak with your venue about it.

Danidawn20

In Response to <a href="http://forums.theknot.com/Sites/theknot/Pages/Main.aspx/wedding-club-boards_june-2012-weddings_service-charge-question?plckFindPostKey=Cat:Wedding%20Club%20BoardsForum:3ae4d68d-f10a-4dec-8810-da13c14a7b86Discussion:92068958-ef25-4710-8c5e-42f0689ec72fPost:b75bb8f3-b3f2-420b-a5f0-ea704b23d869">Re: Service Charge Question</a>:
[QUOTE]I noticed you are listed as Minneapolis/St Paul, as am I...but I live in Wisco where state law requires they tax service charges. Gratuity may not be included, I would speak with your venue about it.
Posted by MiksChick23[/QUOTE]
  This

Abonsut

The service charge is taxed in Chicago.  But then again, it seems like we tax our taxes...

tgerl

My venue is also taxing the service charge.  It's detailed out in the contract that way.

MrsAMS

Yep, same here, but we knew that from the beginning.

7% tax
20% service charge
$1,000 matrie d fee
Ceremony set up fee
Parking fee
The list goes on...!