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VIP June 2017

is service fee taxable?

Judi, on October 24, 2016 at 10:03 PM Posted in Planning 0 6

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Looking over the estimate for one of my caterers (not my top choice) and i noticed that they itemized the food, added a 24% service charge and THEN added a 6% sales tax...

that doesn't seem right..... should i question this? Or am I wrong?

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6 Comments

Latest activity by Erin Wood, on October 25, 2016 at 2:36 PM

Master November 2016
LoveInDC · on October 24, 2016 at 10:21 PM
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Service charge covers the pay (and probably tip) for all the service staff. Totally taxable. But if you're concerned, ask questions. You should never pay for something you don't understand.
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Dedicated May 2017
Stephanie · on October 25, 2016 at 1:50 AM
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Yep, it's taxable. So is room rental in some venues.
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Master May 2013
Dreamer · on October 25, 2016 at 11:40 AM
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In PA it is. Everything is taxable, including shipping charges, when you order something.
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Nancy Taussig · on October 25, 2016 at 12:20 PM
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Depends on your state/county/city.
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Celia Milton · on October 25, 2016 at 12:22 PM
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Depends on your state. In NJ, services (like me, shrinks, etc) are not taxable.

I'd call your state office of taxation. Its probably a significant amount.
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Master July 2017
Erin Wood · on October 25, 2016 at 2:36 PM
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That's seems right. Everything at our venue was charged a 24% fee and 8.25% tax except the extra hours we purchased. Definitely find out if your venue will charge taxes and fees on everything. It added a lot to my estimate.
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