Post # 1
I’ve just been working on my wedding budget here because I got a quote from my venue. I was trying to see what the gratuity would be because all I know is that it is 15%.
Is this 15% gratuity before or after taxes?
I just want to make sure I’m doing it right or else I’ll throw my budget out of what since it is a good at least $1000 difference.
Thanks guys in advance!!
Post # 3
@lilwickedful: I always tip on the total before taxes. Not sure what the proper etiquette is but I look at as tipping on the portion of the good or service that the vendor is providing.
Post # 4
@lilwickedful: Gratuity is calculated before taxes. There is no reason to tip an extra percentage on the amount that is going straight to the government.
Post # 5
We usually tip before taxes.
Post # 6
Here its before taxes… but its also taxable. So you pay taxes on the gratuity. Annoying.
Post # 7
@sostobe: Gratuities are income. Why shouldn’t it be taxable?
Post # 8
There’s two reasons it’s annoying me. 1. I hate gratuity being added to a bill. IMO, it should be my discretion for a job well done. Which means it would come after the fact. I’ll give you the amount I think is reasonable for the service I’ve received. What you owe the government out of that is not really my concern. 2. I also hate that tax is added to items at the register. I’m going to be paying the tax either way, so just lump it in from the start, like its done in a number of other countries. An item or service is 13% higher than the ticket, so just call it that price from the start.
Post # 9
@sostobe: Sorry, I may have misinterpreted your response. I thought you were expressing unhapiness that people who receive tips have to declare them.
I too believe that gratuities should be optional for good service- not just for doing your job. And yes, I am prepared for prices to go up in order for employers to pay their staff a living wage. I am also suspect that wedding vendors actually share the total amount of gratuity they receive with the staff.
It would be easier if taxes were added into the price but not everything is 13% higher- it depends on if it is PST or GST or both, that have to be added.