Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

Hawaii state law to automatic gratuities are taxed? Hotel…

Customer Question
Hawaii state law to...

Hawaii state law to automatic gratuities are taxed?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Hotel restaurant does a automatic 15 percent gratuity for parties of 6 or more, and the guest pays a tax on the gratuity as well, should this be the case?

Accountant's Assistant: Is there anything else the Accountant should be aware of?

No, I was just told that it is the Hawaii state law

Submitted: 6 months ago.Category: Tax
Show More
Show Less
Ask Your Own Tax Question
Answered in 13 minutes by:
11/24/2017
Tax Professional: Tax.appeal.168, Tax Accountant replied 6 months ago
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,647
Experience: 3+ decades of varied tax industry exp. Tax Biz owner
Verified

Hello. Thank you for choosing this Q&A service for assistance. My name is***** am reading over your inquiry. I will respond to you shortly.

Ask Your Own Tax Question
Tax Professional: Tax.appeal.168, Tax Accountant replied 6 months ago

The amount that the restaurant is charges for large parties is referred to as a mandatory service charge. This is allowed and based on the following information, this charge does not go to the employees in all cases. SEE BELOW:

-----------------------------------

Some restaurants tack a “mandatory service charge” on to bills for large tables of diners, private parties, or catered events. Under federal law and in most states, this isn't considered a tip. Even if the customer thinks that money is going to you and doesn't leave anything extra on the table, your employer can keep any money designated as a "service charge." The law generally considers this part of the contract between the patron and the establishment, not a voluntary acknowledgment of good service by an employee. Many employers give at least part of these service charges to employees, but that's the employer's choice: Employees have no legal right to that money.

A couple of states have different rules, intended to make sure that customers know whether their money is going to the employer or the server. Hawaii is one of them: Hawaii employers that use mandatory service charges for the sale of food or beverages must either pay that money to employees as tip income or clearly disclose to the customer that the service charge will be used for expenses and costs other than employee tips and wages.

REFERENCE SOURCE:

https://www.nolo.com/legal-encyclopedia/hawaii-laws-tipped-employees.html

----------------------------------------------

Hawaii does not impose a sales tax, instead, they impose a general excise tax (referred to as the G.E.T.). This is likely what they are charging. SEE BELOW:

Unlike many states, Hawaii does not have a state sales tax. Instead, Hawaii has a general excise tax. As excellently explained in an article by Hawaii Civil Beat, "The General Excise Tax (GET) is levied against a business's gross receipts for the privilege of doing business in Hawaii. The majority of business activities are subject to a 4 percent tax.

REFERENCE SOURCE:

https://www.tripsavvy.com/additional-taxes-fees-when-traveling-to-hawaii-1533988

----------------------------------

In closing, my goal is to provide you with the best experience possible! Hopefully, the service that I have provided has earned a 5-star rating! Please remember to rate my service by selecting the 5 stars at the top of the screen before you leave today. Thank you in advance. If you require further assistance, use the reply box and let me know.

Ask Your Own Tax Question
Was this answer helpful?
Ask Tax.appeal.168 Your Own Question
Tax.appeal.168
Tax.appeal.168
Tax.appeal.168, Tax Accountant
Category: Tax
Satisfied Customers: 4,647
4,647 Satisfied Customers
Experience: 3+ decades of varied tax industry exp. Tax Biz owner

Tax.appeal.168 is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,495 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,272 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
Supreme court's ruling on paying taxes on mans labor.
supreme court's ruling on paying taxes on mans labor … read more
Carter McBride
Carter McBride
LLM
1,069 satisfied customers
What is the 2018 Federal capital gains tax rate for married
What is the 2018 Federal capital gains tax rate for married filing jointly with combined incomes of <$325K? Also, same question for California. We are selling our home and expect a capital gain of … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
The state did a estimate on are business sales tax and I
The state did a estimate on are business sales tax and I hadn't sent the amount tat should of been taxable the amount that should of been taxed is way less then what the estimate was what do I do they… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Where can I get tax tables and 1040 for 2018 for planning
where can I get tax tables and 1040 for 2018 for planning purposes and filing estimated tax return for 2018 … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
Looking for estimated tax rate for 500,000 income in 2017.
looking for estimated tax rate for 500,000 income in 2017 … read more
Richard
Richard
Tax Attorney
Doctoral Degree
4,495 satisfied customers
I filed my state and federal taxes electronically and then
I filed my state and federal taxes electronically and then realized that I accidentally omitted something that significantly changes my refund from the federal and my payment to the state. I need to f… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
This is regarding income assignment. As a rule, I know that
This is regarding income assignment. As a rule, I know that income reported in my clients personal ssn cannot be assigned to the s-corp they own, but what if it's not an s-corp? What if it's an llc wi… read more
Carter McBride
Carter McBride
LLM
1,069 satisfied customers
According to federal income taxes rules, can a non-
According to federal income taxes rules, can a non- custodial parent fund a bank account with pre-tax dollars to pay child support … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
What is the rule for federal tax write offs fore real estate
what is the rule for federal tax write offs fore real estate acquired in a county tax sale … read more
Chad EA, CFP ®
Chad EA, CFP ®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,232 satisfied customers
What is the tax benefit rule? What is the Tax Benefit Rule?
What is the tax benefit rule? JA: The Accountant will know how to help. Please tell me more, so we can help you best. Customer: What is the Tax Benefit Rule? JA: Is there anything else important you t… read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
How do i determine the taxes [state, federal, etc] i need to
hi, how do i determine the taxes [state, federal, etc] i need to pay as an independent contractor? … read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
IN DOING MY 2017 FEDERAL & STATE OF COLORADO INCOME TAX
IN DOING MY 2017 FEDERAL & STATE OF COLORADO INCOME TAX RETURNS, I DISCOVERED THAT I HAD OMITTED FORM SSA-1099 INCOME FOR THE YEARS 2014, 2015, AND 2016. Do I need to file amended income tax forms for… read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
BONE FIDE PUERTO RICO LAW. Military and I paid federal taxes
Military and I paid federal taxes but my home of record is puerto rico they also took state taxes … read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I want to obtain copies of my 2016 federal and state income
I want to obtain copies of my 2016 federal and state income tax returns. … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
The new federal tax law doubles the amount of money that's
The new federal tax law doubles the amount of money that's automatically exempt from the federal estate tax -- to roughly $11 million of an estate for someone who was unmarried. The provision remains … read more
NPVAdvisor
NPVAdvisor
CFP Licensee and Practitioner
Master's Degree
180 satisfied customers
Has the IRS made any ruling on the deduction of state
Has the IRS made any ruling on the deduction of state withholding tax and real estate taxes on Schedule A for 2018. Will there be a requirement to deduct withholding in total before moving to real est… read more
Tax.appeal.168
Tax.appeal.168
Tax Accountant
4,647 satisfied customers
As a retail shop, would I report Gross Receipts on my
As a retail shop, would I report Gross Receipts on my Corporate Income Tax Return as my total income including state/city sales taxes or less the state/city sales taxes?… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,272 satisfied customers
What would the federal and state tax rate percentages be for
What would the federal and state tax rate percentages be for a $7700 IRA early withdrawal in Ohio?… read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,119 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x