(Closed) What is with tax being charged on gratuity?

posted 8 years ago in Reception
Post # 3
Member
138 posts
Blushing bee
  • Wedding: January 2011

That really doesnt seem normal!! Have multiple places shown you the math like that?? I live in CA as well and know what a pain in the butt tax is out here!! I woiuld definitely look into that if I were you… it just doesnt seem fair/correct/LEGAL!

Post # 4
Member
768 posts
Busy bee
  • Wedding: April 2010

are you sure it’s gratuity that they’re charging and not a service fee? service charges are standard in CA and are taxable AND then you tip on top of that. I almost fell off my chair when i saw that, but confirmed it with several other sources, so I didn’t feel completely screwed. definitely double check with the caterers that the 20% is included gratuity not a service charge!

 

Post # 7
Member
124 posts
Blushing bee
  • Wedding: September 2011

Ugh, @canuckbee, I’m in that same boat. Did you ever resolve this (i.e. could you prove it to be illegal?)? My fiancee and his father are digging into tax laws to find an answer, but no luck yet. 

Post # 8
Member
19 posts
Newbee
  • Wedding: January 2012

When we had our engagement party/dinner last weekend, the restaurant gave us a price breakdown and it had the taxed gratuity thing.  I asked about it, and apparently there is a CA law that requires any venue, restaurant, caterer, etc. that charges a mandatory service fee or gratuity has to tax it.  I know it’s so dumb, esp. because in CA, that means that over a fourth of the venue cost is going to tax and gratuity. 

Post # 10
Member
45 posts
Newbee
  • Wedding: July 2014

I’m in Canada and many quotes that we have been getting include gratuity plus tax on gratuity and I know its annoying but it seems to be the way a large amount of venues are operating.

Post # 10
Member
3 posts
Wannabee

I know this is an old post, but we have been running into this issue as well. When we did some digging we found some tax law that stated ‘if the included gratuity is part of the company’s policy, then it is considered income and therefore, taxable’

I wasn’t even that upset about the gratuity being charged. This is what heppened. When we met with the event coordinator at our venue, she went over every line item with us, she made no mention of an included gratuity. Then when she sent me an invoice, there was a surprise 20% gratuity added to the combined total for the hall rental, catering, bar, and dj. I want to say screw you and find another venue, but there aren’t many nice places around here, and we still really want to have our ceremony/reception there. =/

 

Am I wrong for being upset about this?

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