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June 2012 Weddings
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Service Charge Question

AbeandCarrieAbeandCarrie
100 Comments
in June 2012 Weddings
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!
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Re: Service Charge Question

  • acaponi87acaponi87 member
    1000 Comments Second Anniversary 5 Love Its Combo Breaker
    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
    June 16, 2012
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  • daria24daria24 member
    2500 Comments 500 Love Its Third Anniversary First Answer
    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".
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  • janeashjaneash
    500 Comments
    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!

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  • UKgal321UKgal321 member
    100 Comments
    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. 
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  • k3MySailork3MySailor
    100 Comments

    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.

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  • whifflegirlwhifflegirl
    10 Comments
    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.
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  • MiksChick23MiksChick23 member
    100 Comments
    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.
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  • Danidawn20Danidawn20
    1000 Comments
    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]
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  • AbonsutAbonsut
    10 Comments
    The service charge is taxed in Chicago.  But then again, it seems like we tax our taxes...
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  • tgerltgerl
    100 Comments
    My venue is also taxing the service charge.  It's detailed out in the contract that way.
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  • MrsAMSMrsAMS
    10 Comments
    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...!
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