Is A Service Charge The Same As A Tip? [Solved]

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Is A Service Charge The Same As A Tip? [Solved]

If a tip is a voluntary payment, the money is considered a gratuity paid directly to the server. If it is a mandatory payment, (disclaimer on the menu – parties of six or more will have a gratuity added) then it is considered a charge for service to the business, is taxed as such, and does not belong to the server.

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