(Closed) Service Charge vs. Tip? Is it the same thing?

posted 7 years ago in Money
Post # 3
Member
3295 posts
Sugar bee
  • Wedding: May 2011

hmmm im interested to hear the answers as i was wondering this too… i guess i just assumed that its the tip…

Post # 4
Member
85 posts
Worker bee
  • Wedding: October 2011

At our venue I understood the service charge ( that is also taxable ) is not a tip, it is another way that they help pay for the extras, staff, etc

Post # 5
Member
1166 posts
Bumble bee
  • Wedding: December 2010

My caterer added a 20% service charge, which WAS the tip. I would ask for clarity. If it’s not the tip, I would definitely want to know exactly what it’s for, because it seems like a way to inflate the cost artificially.

Post # 6
Member
5921 posts
Bee Keeper
  • Wedding: December 2010

When I worked at a hotel, they explained it as the tip is the gratuity for the servers, and the service charge is for carpet cleaning, routine wear and tear, etc.

Post # 7
Member
1927 posts
Buzzing bee
  • Wedding: October 2012

I always assumed “service charge” was a nice way of saying “tip.”

Post # 9
Member
48 posts
Newbee
  • Wedding: November 2011

I would ask for clarification.  Where I work we automatically grat 15% to every credit card transaction. HOWEVER, we also charge a “service charge” of 5% that is distributed amongst the hosts, managers etc.  So the receipt reads both service charge and gratuity.  Just ask to be safe.  

Post # 10
Member
5784 posts
Bee Keeper
  • Wedding: May 2011

I just assumed it was the tip. Like when a large group dines at a restaurant and they stick the tip on the bill automatically so you dont stiff the waiters.

Post # 11
Member
141 posts
Blushing bee
  • Wedding: May 2011

We are also being charged a 20% service fee at our venue. Everyone I asked so far, said that is considered to be the tip.

Post # 12
Member
1810 posts
Buzzing bee
  • Wedding: April 2011

I think the service charge is the tip, but I am also going to give my wait staff, coordinator, DOC and officiant cash or gift card tips as well because I don’t know if the “service charge” actually trickles down to them or not. But it won’t be 20% of the total bill, of course. It’ll probably $20-25 each for waitstaff (depending on how many we have) and $50 each for coordinator, DOC and officiant, as a Thank You.

Post # 13
Member
5921 posts
Bee Keeper
  • Wedding: December 2010

@EmeraldR: You wouldn’t believe how dirty people make venues though, LOL.  We had to steam clean after every single event.  There was other stuff it covered, but I don’t remember.  Haha! Ours wasn’t 20% either.

Post # 15
Member
267 posts
Helper bee
  • Wedding: June 2011

I actually emailed our venue event director to ask this question. This is the response I got “Yes the 21% service charge does include gratuity to pay our staff”. I’m assuming that this means I don’t need to include an extra tip??

Post # 16
Member
85 posts
Worker bee
  • Wedding: October 2011

This is directly from my venue’s website:

Service Charge: A 17% service charge is added to your invoice. This charge is not a gratuity. It is to cover all service related personnel. This charge is taxable.

 

Guess we’re not as lucky for this service charge to be a tip

The topic ‘Service Charge vs. Tip? Is it the same thing?’ is closed to new replies.

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