Service Charge/Gratuities/Tips

[DisneyMoB]

Firstly, apologies if this seems like a dumb question to US readers

For the benefit of a Brit, can any of you experts explain to me what the difference is between a service charge, a gratuity and a tip?

I've read the helpful section in Passporter which explains the nuances of how the 21% service charge is applied to certain items in Disney. However, I'm unclear as to whether or not the 'service charge' is a uniquely Disney thing, or is common practice in the US and applied by some external vendors such as photographers, videographers & officiants to their services too.

Finally, if a service charge is applied to an item, and assuming it is different from a gratuity/tip, are we expected to pay a gratutity/tip on top regardless of quality of service/for good service?

Answers to the above will help with the budgetting

 

[Cinderella9-09-09]

From what I understood from my planning session this week service charge of 21% is another way of saying mandotory tip/gratuity. This 21% that is called "service charge" is added on to your bill before all you taxes, so yes you will be paying a 6% Florida tax AFTER the 21% is added. I asked my planner and it IS legal to tax on this is long as it is not called tip/gratuity. Hope this helps

Oh and by the way if you or someone else lives outside Florida, mail the pictures/video to them if you are using Disney. My mom is paying for video/photo and lives in NY and I live in Florida. If the items are mailed outside of Floirda there will be no 6% Florida tax added to the actual video/photo services or products. That saved us like over 500 US dollars for just the cheepest packages.

 

[lurkyloo]

For the benefit of a Brit, can any of you experts explain to me what the difference is between a service charge, a gratuity and a tip?

At Disney, the terms "gratuity" and "service charge" are used interchangeably to mean a flat percentage of the bill that you are required to pay for service, usually 18%-21%.

However, in general, the terms "gratuity" and "tip" may also be used interchangeably to refer to the discretionary amount you might choose to leave for your waiter or give to the bell hop who carries your bags.

Pretty confusing, eh?

However, I'm unclear as to whether or not the 'service charge' is a uniquely Disney thing, or is common practice in the US and applied by some external vendors such as photographers, videographers & officiants to their services too.

Service charges usually only apply to food and beverage expenses. (Edited to add: Disney also has a service charge for setting up audio-visual equipment, but this is not taxed like food and beverage service charges are.) If you had a wedding at any US hotel or hired a caterer for a home wedding or other reception venue, you would be assessed a service charge on food and beverage. Many US restaurants also add an automatic service charge (or "gratuity" ) to groups of a certain size - 6 or 8 or more.

Service charges are NOT commonly billed by photographers, videographers, officiants, etc. Their entire business is a service, and you are already paying them a fee for it. About the most extra you might be charged is sales tax if they give you products (albums, photos, a DVD), but usually only residents of that state have to pay it.

Finally, if a service charge is applied to an item, and assuming it is different from a gratuity/tip, are we expected to pay a gratutity/tip on top regardless of quality of service/for good service?

The short answer is no, because the service charge and gratuity are the same thing. And you are never required to tip in a situation where you are already paying a service charge, but sometimes people do if they feel the servers did an outstanding, above-and-beyond kind of job. Heck you are never required to tip at all - it's supposed to be a sign of your gratitude for good service...

 

[DisneyMoB]

Oh and by the way if you or someone else lives outside Florida, mail the pictures/video to them if you are using Disney. My mom is paying for video/photo and lives in NY and I live in Florida. If the items are mailed outside of Floirda there will be no 6% Florida tax added to the actual video/photo services or products. That saved us like over 500 US dollars for just the cheepest packages.

Thanks Cinderella. We don't have anyone in the US to have things mailed to, but presumably overseas will count as outside Florida?! Then there'll be the mailing costs to add on .....

 

[DisneyMoB]

Thanks for the explanation LurkyLoo. It's reassuring to know that all this is more complicated than it first appears - and not just me being very dim

My posts so far seem to be all about money!! My daughter and I are having a great time planning the wedding, HONEST. But chief banker seems to be in the job description for MOTBs.

 

[DisneyMoB]

So, from what you guys have told me, and what I've read, have I got this broadly correct:

No service charge or tax = transportation, entertainment and event guides.

No service charge, but item taxed = venue rental fees, flowers, move fees, set up fees, chair/table decor, stationery (e.g. guest book & menus), photography* and videography* (* if photos/CDs/DVDs are delivered to us before leaving Florida).

Service Charge = audio package set up

Service Charge which attracts tax = anything to do with food and beverage including the cake (unless the cake is delivered to a GF venue)?

Phew ... or is it back to the drawing board for me??

 

[lurkyloo]

That's correct!

 

[DisneyMoB]

That's correct!

Blimey - I think I've got it!!

Thanks for the help.