What is a Service Charge?

A service charge is a mandatory and automatic (pre-determined) fee. Hotels and event venues typically add it to your invoice. This could be a rental invoice, catering invoice, audiovisual (lighting, microphones, etc.) invoice. Here is an example: Most hotels in the Washington DC area charge a service charge (typically 20 – 24%) on their F&B invoice and their audiovisual invoice.

What is a Gratuity?

A client gives a monetary gratuity for a service performed. Another name for a gratuity is a tip. Here is an example:We typically tip our waitress or our hair stylist for great service.

What’s the Difference Between a Service Charge and a Gratuity?

A service charge is mandatory. The hotel, event venue or vendor pre-determines the service charge. The gratuity is at the discretion of the bride or groom.

A Tax is Typically Added to a Service Charge

One more thing. Most service charges are taxed, so a 24% charge could be as high as 34% when it is all said and done. (ouch!)  So, I recommend reviewing this charge with your vendors beforehand to ensure that you plan your wedding budget accordingly.

Interested in More Money Advice Regarding Your Wedding?

For more details related to your wedding finances, download our bundle of budget worksheets and vendor gratuity guidelines here.

Are You Ready to Plan Your Wedding?

Are you ready to plan your “worry-free” wedding experience? Please contact your wedding planning team at Howerton+Wooten Events. We specialize in providing our couples with practical, helpful advice that allows them to maximize their wedding planning dollars.

Love and Soul Always, Kawania

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