Tip on tax..huh?! What would you do...

Hadley2B · September 2009

So I confirmed everything with my rehearsal dinner venue and I gave her what I had for my total including the 18% tax and 6.25% state tax (ugh). Her total was $40+ higher than mine. After we went over the figures, her tip was higher than mine. I asked why and if she figured the tip on the total WITH tax and she said "yes, if you were to come in for dinner for two, you would pay the tip on the total including the tax." Hmmmmm...what are your thoughts? What would you do in this situation?

foolforfood · September 2009

Are you trying to say that your $10 tip is taxed in the amount of $0.50? That's not per state law, so it would be prudent for your venue to contact their attorneys/accountants for clarification.

Hadley2B · September 2009

When I told her that I have never heard of leaving a tip on the tax also, she said "well you'll have 2 waitresses that night so keep that in mind."

amybw · September 2009

That definitely doesn't sound right to me. I believe you are correct, they should not be adding the tip to the total WITH tax. When you go to a restaurant, a lot of people are lazy and pay the tip according to the total WITH tax, but technically you should tip off the amount WITHOUT tax. I would explain this to her, and say, why should we tip you off of a state tax amount? That is not correct at all!

foolforfood · September 2009

Excuse her. So what if there are 2 waitresses? That has nothing to do with remitting sales tax to MA. Do you mind telling us where your RD is being held?

kebmtm071605 · September 2009

She's wrong. And yes...if you go out to dinner, most people do tip on the total...but that's usually out of sheer laziness. You are not supposed to tip on the tax.

kebmtm071605 · September 2009

Who gives an F if there are 2 waitresses...doesn't make a bit of difference. Staffing levels are to be in accordance with the # of guests. Tipping totals are based on the total bill. The lady sounds like an idiot.

kebmtm071605 · September 2009

Ask to speak with the GM of the restaurant.

jthennigar · September 2009

Agree w/ pp - tip on total w/o tax.

cazzysmith · September 2009

no way, tip is supposed to be based on total BEFORE tax. what's the venue?

herd03 · September 2009

I agree, you should tip on the total pre-tax. Regardless of 2 waitresses or not.

macreese66 · September 2009

That's nuts- you don't pay tax on a tip. I bet they aren't going to pay the state of Mass the tax paid on a tip. Are they calling it a "service charge"? Still wouldn't seem right to me, but maybe that is worth figuring out- can they tax on a service charge? I don't think they can- I am pretty sure the tax is only product, not service.

Hadley2B · September 2009

Thank you...I don't feel like a dummy now that everyone agrees that something is wrong with this picture. It's at Il Forno restaurant in Worcester. They have 2 other locations and just opened this one up. Great food, but this was strange.

jesibel14 · September 2009

Well first it sounds like you are paying a "Tip" on the "Tax" and not the tax on the tip, so that is good at least or else the IRS would have to be called in!

Second, definitely push back on that, or like PP said, get the GM involved. That is ludachrist, especially for a function. If you go to any restaurant that adds say 18% on say parties of 6 or more, you'll notice that its 18% added on BEFORE tax, not after - I would point that example out to her. She obviously doesn't know what she's talking about, and even if she hasn't been in the business that long, she should be educated enough in that area if she is the running big functions like a Rehearsal Dinner. As far as the 2 waitresses thing? Is she serious? If you want to tip extra because there are 2 waitress, then you will - that is your discretion - I can't believe it even was brought up to be honest. Plus, 2 waitresses for a RD at 18%? Please they'll do just fine lol This all coming from a 10 plus year PT waitress (wow, I'm getting old!).

LucyD1029 · September 2009

We were charged tax on the service fee (tip in our case), but not the other way around. Our RD was in CT, so the tax laws are a little different. At a restaurant, I tip on the subtotal, excluding tax.

choppinbroccoli22 · September 2009

no tipping on tax. When it's a $20 restaurant check, $18 before tax, I might splurge with exceptional service and give them a whopping extra $0.40 tip. When I'm spending $xx,000 on the other hand, and the sales tax has gone up AND hotel tax and food tax is going up as of Oct 1 (OH YES, IT IS!!) I will not be tipping on tax. I was thinking, wouldn't it be cute if a whole table dressed up like Massachusetts icons. Paul Revere, a Lobster, a Kennedy, etc.... just because for the INCREASE in taxes that they are tacking on as of Oct 1, we could seat a whole other table of guests. Think about it!!

Tip on tax..huh?! What would you do...

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