gratuity vs service charge

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Posted by Carl Jones on January 08, 1998 at 16:32:35 :

In Reply to: Re: gratuity posted by Karen Bruner Upright on January 08, 1998 at 13:07:15 :

: I pay my servers and kitchen staff a flat fee for off-site catering, so there is no confusion regarding gratuity. If the client feels things went especially well, they often give a small gratuity ($10 or more per staff member), but I certainly don't require it. If you are going to charge a standard gratuity (15% or 18% or whatever), it should be included in the proposal. If you are going to leave it to the customer, you should include a line indicating gratuity is expected (such as "not including tax and gratuity"). I think the customer just needs to know what is expected of them. I indicate on my proposals that the final amount "includes gratuity" even though I don't actually charge one.

: Karen

If you call it a "gratuity", you are required by law to give it to
the staff, if you call it a service charge, you can give any amount
or no amount to the staff...... Which is what I do, for the reasons
in my post above Karen's


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