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Yet another tip/service charge question...

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Not About Food 4

Yet another tip/service charge question...

hattie | Aug 14, 2005 08:14 PM

Okay, I've been following some of the earlier PerSe and other threads about tipping vs. service charges ( and if this has been addressed somewhere I missed, sorry, please just direct me to the thread ), but I'm wondering about why service charges are added in before tax, and if you are adding a tip it's added after the tax. At least this is what I've noticed lately here in MIami. So why is a service charge taxable? And does that cover the employee's tax, or the establishment?
I drove my husband crazy with this over our lunch bill today - he finally said "why don't you just ask the Chowhounds?" I think there was also eye-rolling...so any info? Thanks!

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