Gratuity tax taxable?

It seems extremely unfair for a company to tax their tip but logically if you think about it, they are paying tax to the government on the total they make at the end of the day. Thankfully our venue does not charge gratuity they just ask that you tip AFTER the wedding based on the quality of service which is the way it honestly should be.

Catering can have gratuity added to the price. I know venues do charge as part of their contract.

Personal caterers or restaurants supplying the food do have the choice to add gratuity based on functions with large numbers.

It depends on the venue! Some have a mandatory "gratuity" but in reality on paper it's considered a Service Fee, in which case yes you need to add taxes on it!

Some venues a gratuity is actually a gratuity and should be a % based off the PRE TAX amount only... but again others with a mandatory gratuity can sometimes list it as a service fee so you have to pay taxes on it (I got caught with this)

For example:

$100.00 per plate base rate:

+ 18% Gratuity (service fee) = $118.00 per plate

+ 13% HST = $133.34 FINAL PRICE PER PLATE

I hate how fast it adds up :' )

I found this online "Some establishments, such as restaurants, may add a mandatory or suggested gratuity as a service charge to the bill given to the customer. This is often done when a large group is being served. In this case, GST or HST must be charged on the total including the gratuity"

Hope this helps! Sounds like it can be taxed sadly

I honestly don't know - so I will keep checking in on this post - but I would hope not. I mean, it's already a forced tip so I can't see it being taxed. (All of our vendors leave the tipping up to us.)

P.S. Congrats on your engagement and welcome to the WW community!