Quote:
Originally Posted by Rainger99
For a party of 6 or more with a mandatory service fee of 18%, are you supposed to tip on top of that? And do you tip on the 18%?
So for a $500 bill plus a $90 service fee, should you tip $75 (15% of $500) or $88.50 (15% of $590)?
And if the restaurant called it an 18% gratuity fee instead of a service fee, would that make a difference?
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As I understand it, mandatory charges are not considered tip income for tax purposes, regardless of what you call them.