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diane
Beginner January 2017

Reception Service Charges & Fees

diane, on December 13, 2015 at 10:11 AM Posted in Wedding Attire 0 12

Hello, I am in the process of doing my contract with the reception venue and they are charging me 20% service charge and 6% sales tax. How should i calculate this to get the total amount? Is it 20% of the price and the 6% of the result? Or do you calculate the 20% of the original price and then 6% of the original price and add them together? Help! I am so confused and i dont want to be paying taxes double or getting scammed for more money due to lack of knowledge in these things?

12 Comments

Latest activity by Brianna, on July 24, 2017 at 10:20 PM
  • Chrissy
    Master September 2016
    Chrissy ·
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    They'd both be on the base price. So take the base price and multiply by 1.26 for the total.

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  • neeners
    Devoted September 2016
    neeners ·
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    I would just ask the venue though so you have the most accurate estimate. For ours the 20% doesn't get applied to every line item on our final bill, so it's worth a quick email or call just to confirm.

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  • Sqwiggy
    VIP April 2016
    Sqwiggy ·
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    Both percentages are off the base price and should be separate line items on your invoice.

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  • Celia Milton
    Celia Milton ·
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    The tax should not, depending on your state, be calculated on your service charge. That is something to find out.

    That 20 % is the charge for the staff salary. Whether they call it a gratuity or not, it's not a tip.

    You ask all the questions you need to get to an answer you truly understand.

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  • Sunni
    VIP May 2016
    Sunni ·
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    If yours is calculated like min, it'll end up being 27.2% :-(

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  • annakay511
    Master July 2015
    annakay511 ·
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    You should ask the venue. My father refused to pay tax on the service charge, but that's how they originally calculated it (base price plus 21% service charge then 6% sales tax). Also, check to see if the service charge is gratuity for the staff or not (it was gratuity for me). Also, does your state have alcohol tax? MD has 9% alcohol tax you have to pay on top of sales tax, so consider that as well.

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  • Chrissy
    Master September 2016
    Chrissy ·
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    Damn that alcohol tax, @annakay! I'm in Baltimore and it just makes the math more annoying. Especially since my open bar is $$$$

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  • KitandKaboodle
    Master November 2016
    KitandKaboodle ·
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    We asked our venue to provide to calculate the cost for us. This way, we have an exact amount of what is owed.

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  • Sarah H.
    Master September 2016
    Sarah H. ·
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    Same for us as well. It seems like a lot easier especially after they take their deposit.

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  • MrsA
    Master October 2015
    MrsA ·
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    My caterer charged as follows for an example:

    -Food/beverage/equipment

    -Staffing (3 servers, 1 supervisor, 1 bartender)

    They charged a 20% gratuity and state tax against Food/beverage/equipment.

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  • Mrs. S
    Expert May 2016
    Mrs. S ·
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    Why do you have to figure this out! Our vendor immediately created an invoice based on the services we wanted. We were able to see the total cost before we signed and paid the deposit. And every time we make another deposit we receive a new invoice with the remaining balance

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  • B
    Just Said Yes July 2017
    Brianna ·
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    I cannot figure out how to get ahold of wedding wire customer service. I was double charge for a Snapchat filter??? I wanted to fix this with them first before going tot the bank...

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