Major vent... (a little long...)

My catering hall is charging me sales tax on my catering bill AND the 18% "service charge".

I went to many catering facilities when looking for my hall and heard that it was illegal to charge sales tax on gratuities.

Therefore, when I meet with the catering managers (different from the original person I was dealing with, because he was no where in sight), I had a major argument with them over this.

I think they hide this practice by calling the 18% gratuity a "service charge" instead and that's how they get away with this.

Please let me know if you've experienced this, and whether or not I'm right with this matter.

Thanks

Re: Major vent... (a little long...)

thats what my hall did too, i think that is normal.....

Re: Major vent... (a little long...)

This is a tough issue to explain...your accountant may the real person to ask, but the long and short of it is, the 'service charge' is not considered a 'gratuity'. This is going to sound like complete BS, but while we all consider it the staff gratuity, technically you are paying for the intangible service you received and in NYS and NYC, services are a taxable item. I know, it stinks.

Re: Major vent... (a little long...)

This is not the only financial issue I have had this month with them.

I sent them a personal check on 7/10 to pay for the final expenses on the wedding. I figure 2 weeks should be enough for a check to clear. It does for every other vendor, and their contract does not specify any time limit for personal check payments.

Three days ago, someone calls me to inform me they cannot accept payment, because the check was made 20 days before the wedding rather than 3 weeks (21 days) before.

IF the service charge is taxable, then I would have no choice but to pay the amount, but I would not recommend this place to anyone anymore. I only hope that they follow my instructions and that things go as planned.

Re: Major vent... (a little long...)

Sorry this is upsetting you but unfortunately, I think it's a pretty normal fee we're all paying - just another way to nail the new Mr. and Mrs. Did you go back and look in your contract? They should have specified this cost in the beginning.

Message edited 7/26/2005 11:43:34 PM.

Re: Major vent... (a little long...)

it is normal. I am paying the same..18% and tips.

Re: Major vent... (a little long...)

Hmmm....my hall is the tax and then the 18% gratuity. It should be stated on your contract though.

Re: Major vent... (a little long...)

I have that too

Re: Major vent... (a little long...)

I have it too, but its called a 'service charge'..blah blah blah

Re: Major vent... (a little long...)

we're also paying tax plus 18%grat plus tips to like everyone

honestly if everyone does what theyre supposed to do to make the day go smooth for us then i dont mind

Re: Major vent... (a little long...)

I went to a hall that voluntarily explained gratuity and service charge. They explained it because they charge gratuity and explained to us that there are places that charge a service charge and others charge gratuity... service charge is taxed, gratuity is not!

Re: Major vent... (a little long...)

After reading this I looked at my contract and I am paying tax on the service charge as well. I guess that's how they do it. But I'm not tipping on top of it. The service charge is the tip.

Re: Major vent... (a little long...)

Well if your getting married at The Watermill
your in luck. the bm there told me that they don't tax the grat. but most other places do. Everywhere else i've been did.

Re: Major vent... (a little long...)

The ladies on here are correct, you can charge tax on a service charge but not on gratuity. (I did a bunch of research when this issue came up with my hall, and unfortunately, that's the answer that I found on a NY tax site.)

Re: Major vent... (a little long...)

We're paying tax and 20% service charge...go figure!

Re: Major vent... (a little long...)

My BM told me that the 'service charge' is basically the gratuity. We get taxed on it, but we dont HAVE to tip unless we choose to. I went over this with him like 30 times b/c we saw something we didnt like at a wedding and he said, we CHOOSE to tip!

It is not expected, but if someone did a great job we could. Ask your BM about it.