i recently went to a restaurant were they added 18% gratuity and then added a gratuity tax?

Question

is the gratuity tax normal i thought the server is supposed to pay tax on the gratuity

Answer 1

I don't know about the gratuity tax, but I do believe that restaurants should be able to add a gratuity to larger parties. They do so because, on average, people do not tip well. Most assume that servers make minimum wage plus tips, but this isn't necessarily true. I am a server and I make $2.13 an hour. However, it should be noted that if your server does a particularly poor job that you should talk to the restaurant's manager about not having the gratuity added.

Answer 2

I never heard of a gratuity tax. I would definitely go back to the restaurant and speak to the manager for an explanation. In my Mississippi hometown, the restaurants charge a gratuity if the party being served is over 8. Of course, I personally don't see why this is charged. Would just be like waiting on 2-3 separate tables with 3-4 patrons at each table. They do nothing extra.....but waitresses/waiters are underpaid in my town.

Answer 3

Definitely do not go back there. I've never heard of a gratuity tax before. What city was this in? This can NOT be legal, but you never know... Democrats, you know.

Most places that add gratuity add it on the TOTAL (after tax), which is technically illegal. Check to be sure that any added gratuity is on the pre-tax amount.

I avoid restaurants where they automatically add in a gratuity (unless I am part of a party of 8 or larger). I tip more than well enough (having worked the food service industry back in my teens and twenties, and knowing how little they get paid), but it grates on me that some restaurant automatically believes you must pay a fixed amount.

Answer 4

Since you din't say where you were, you might try questioning the local resturants on this practice. It seems as though you were over charged on what we call tips here in the US. Tips are on the average of 15% of the total bill and what ever you might like to add for the service given. If you were in an exceptionally large party the gratuity should have been devided among all the guests.I for one enjoy a good meal but if I am overcharged or the food is of poor quality I can guarantee that word of mouth advertising can kill business. Next time stop at the door and read the fine print.
Enjoy your dining within your budget.

Answer 5

Usually restaurants will add a gratuity to the check if you have a larger party. If you didn't have a large party (like 8-10 or more) then I would go back and ask to speak with the manager.

Answer 6

Don't blame the restaurant, blame the government. The government sees an automatic tip as a service, thus it is taxable. The restaurant is required by law to pay this tax, thus it is passed on automatically to the customer. To avoid this next time, ask the server not to include the tip automatically, but write the 18% tip in yourself, thus you won't be taxed on it.

Answer 7

Depending upon in which state it occurred, it may be a new tax that the state recently enacted. A lot of states are trying to find new things to tax, including services and such. Check with the owner of the restaurant if you want to be sure and understand why it was charged.

Answer 8

I hate when they do that, because i usually tip 25% sometimes even more; so when they do that i just give the 18%; but i really don't know why they would even tax the tip, isn't the tip supposed to be optional?

Answer 9

I don,t think so! I definitely wouldn't go back to that restaurant!!

Answer 10

Don't know about it being normal, but it sure isn't ethical, don't go back!