does anyone know how service charges work for reception venues?

[ficklefaye]

i will be meeting with our venue manager in a few weeks, but i wanted to check with everyone here to see how this has worked out for them

our venue is charging sales tax as well as a service charge, which is a percentage of the amount, how does this normally work? is the service charge taken before or after the sales tax? is this making sense?

 

[ash313]

Haha, I know exactly what you mean, and I had to ask too!

From what I understand, the service charge is taxable. So, for example, our venue has a 20% service charge, so you would add that to the total price. Then, that total is taxed at the regular rate (here in Michigan that is 6%).

Hope that helps! I would check with your venue to be sure!

 

[ficklefaye]

thanks leeNY! i will definitely check with the venue, but i wanted to check here so i wouldn''t get swindled, haha