Went to a restaurant in LA today and when I got the check I noticed that it was a bit higher than it should be. Then I noticed this 18% service charge. So… We, as customers, need to help pay for their servers instead of the owners paying their servers a living wage. And on top of that they have suggested tip. I called bs on this. I will bet you that the servers do not see a dime of this 18% service charge. [deleted a word so it wasn’t a grammatical horror to read]
Does anyone now if the restaurant pays different taxes on food/drinks sold and tip/service fees?
In Washington (everywhere is different) a service fee is taxed as income to the restaurant. A restaurant is not taxed on tips. It’s better for the restaurant to not do a service fee (less taxes) than tips
If a Washington restaurant is charging a service fee, it has to be posted. The verbiage has to say how it’s being used/if the restaurant is taking any portion