Post # 1
Just got my contract … and tax was calculated after the gratuity and service charge were added. I did some quick research here (http://www.tax.ny.gov/pubs_and_bulls/tg_bulletins/st/gratuities.htm) and it seems like I should only be paying tax on the service charge, not the gratuity.
Can you tell me what your contract was like? Any NYC bees, especially! Tax here is nearly 9% – I don’t want to be paying extra when I shouldn’t be!
Post # 3
Are they listed separately?
Service Charge – 18%
Or are they combined on one line as service charge/gratuity?
Post # 4
They’re listed like this:
Venue charge: $xxx
Gratuity (20% staff): $XXX
Service fee (20% venue): $xxx
Sub Total: $xxxxx
Tax (8.875%) $xxxx
Seems a bit fishy no? There should never be a tax on the gratuity!
Post # 5
I’m not in NYC but mine are listed apart and you are right as far as I know we don’t get taxed on gratuitity
Post # 6
I’d write back to them:
“Hi Caterer, Thanks for this proposal – it looks delicious! Just one quick question to clear up. I see the tax line was calculated after the gratiuity was added. I was under the impression that in New York, there was no tax imposed on a gratuity. Was the gratuity not included in the tax calculation? Sorry about this, I’m just unclear on this one thing! Thanks!”
Just be upfront with them! I’m sure they get asked this all the time!
Post # 7
The tax shouldn’t be on the gratuity, thats just weird.
Post # 8
I sent them an email. I feel silly, because it’s an $80 difference, but, still, the principle is there. I just feel bad for anyone who has used that venue before and didn’t notice it!
Post # 9
$80 is $80 more for something else in your wedding. Do not feel bad if it were even $5. Remember, they are the ones trying to charge you $1.50 per napkin. If the small amount didn’t matter, they wouldn’t charge it, so you don’t feel bad about questioning even a penny coming out of your pocket.
Post # 10
I heard back … apparently they need me to “hold tight” as they have their accountant review the contract. I just want to sign it already!