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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To further clarify large group mandatory charges, this is a quote directly from the IRS.gov website:
"Charges added to a customer's check, such as for large parties, by your employer and distributed to you should not be added to your daily tip record. These additional charges your employer adds to a customer's bill do not constitute tips as they are service charges. These service charges are non-tip wages and are subject to social security tax, Medicare tax, and federal income tax withholding."