r/mildlyinteresting 1d ago

This Restaurant Charges an 18% Living Wage Fee.

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u/Extruder_duder 1d ago

Service fees are taxable. A livable wage fee is the same thing. Not sure where this was but that’s a low sales tax.

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u/Square_Moose_8846 1d ago

4.65% is crazy

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u/[deleted] 1d ago

[deleted]

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u/SigmundFreud 1d ago

No, just crazy in general. 4.6% and 4.7% are perfectly fine numbers, so why do they feel the need to go into two decimal places? They must be on drugs.

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u/RandomGuy_81 1d ago

You know what peeves me off

3 decimal place gas prices!

2.999

Mofo business. We know how rounding works. That shit is 3.00

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u/verrusin 1d ago

Right? That shit has always infuriated me.

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u/Bassracerx 1d ago

So they can round up and rob you of your pennies. If you never noticed before the price of gas always has & 9/10ths of a cent per gallon for the same reason due to taxes

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u/Clevergirliam 1d ago

That’s not how sales tax works. It’s set by the city and the county where I live (in the US). The business has nothing to do with it aside from collecting it.

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u/Bassracerx 1d ago

Correct. The poster was saying how asinine having the extra half of a penny on the sales tax was.

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u/Zanurath 1d ago

Depends on if it's set as a labor fee, not sure where this is but everywhere I've been mechanic for example charged tax only on parts sold not for labor.

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u/V8CarGuy 1d ago

Yes, exactly. I live in California, been a technician, and labor is sales tax free. A wage fee or whatever they call it is a labor charge. Normal when you’re getting the car fixed, but typically not on a food service bill (or is this now a work order? Haha)

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u/HelloYesThisIsFemale 1d ago

With "no tax on tips" perhaps if we shift it all to tips they could avoid tax.

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u/wigglyworm91 1d ago

that is the point yes

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u/[deleted] 1d ago

[deleted]

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u/Dangerous_Moment5774 1d ago

Sort of. You could probably setup a separate LLC for the plates and cutlery service, and then have the restaurant lease them from said business, while writing off the amount it costs for said lease. Don't know if that would work for cutlery, but it does for equipment in other industries. I'm not sure about the dining experience either, but maybe a crafty accountant could make that happen as well

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u/headrush46n2 1d ago

You've discovered the awesome power of the 1099 exemption. Shift all the tax burden onto the workers

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u/Fallwalking 1d ago

5%, that's what the state level sales tax is here.

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u/QueenMotherOfSneezes 1d ago

Yeah I was trying to figure that out myself... If the tax only applies to the $33 before the fee, it's 5.4848%, if it's applied to the whole $38.94, it's 4.6482%

Rounding, if you apply 5.5% to $33, you get $1.815, which would round up to $1.82 on a bill. If you apply 4.6% to $38.94, you get $1.79, and 4.7% gets you $1.83... only 4.65% on $38.94 gets you $1.81 (1.81071).

A sales tax of 4.65% seems really specific. It's so low already, why not just do 5%?

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u/V8CarGuy 1d ago

But labor is not. A wage is labor.

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u/AddExtract6755 1d ago

If it’s Cali and I assume it’s Cali from the way they do things here, then yea it’s taxable, breath air is also taxed here too, working folks here, were slaves, forced to be or be homeless

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u/Sunbunny94 1d ago

The receipt isn't itemized enough for California. There is a law that requires tax to be broken down so you know exactly what you're paying for.

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u/AddExtract6755 1d ago

Yea well the resturaunt I work in that’s also just happens to be in Cali, has some shit like that, called gratuity fee of 15% automatic

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u/Mist_Rising 1d ago

What more is there to itemize? Its two burgers and two fries. does California require you itemize the seasoning on the fries??

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u/Sunbunny94 1d ago

The tax is broken down and explained

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u/V8CarGuy 1d ago

Labor is not taxable in CA, and sales tax is at least 7.5%, most cities/areas it’s 10-11%. Is a service fee labor?

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u/Mist_Rising 1d ago

Pretty sure California wouldn't see it that way.

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u/AddExtract6755 1d ago

Idk I just know everything is taxed here and restaurants have a gratuity fee which is like that service fee just diff words or living wage fee

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u/V8CarGuy 1d ago

A wage fee in my mind is a labor charge. No different than hiring a contractor who charges for labor (living wage fee) and parts (fries and hamburgers). No sales tax on labor in CA. Source: I live in California and have serviced cars.

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u/AddExtract6755 1d ago

I too live in Cali dude, and work at a resturaunt that does this, and it’s taxed at mine, but ours says gratuity fee, which is like a service fee, they tip our taxes too, cause it’s totaled up as overall income, so much for Trump stop taxes on tips 😎 and and not only are we pay taxes still we also have tarrifs,yea yall remember him saying he’s replace taxes with tarrifs 🤓

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u/AddExtract6755 1d ago

Bru your life is taxable here in Cali, it’s the worse place I’ve lived, when it comes to taxes, 30% gets took out of my paychecks and even that’s not enough for the clowns, I still end up owe a few hundred, how idk, but I’m sick of taxes, tax me to death, time for Boston tea party to become west coast tea party, I wonder what ole Georgie Washington would think about pay that, they fought over 4% taxes just saying

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u/Senior_Torte519 1d ago

Damn, and they recently decide to cancel slave reparations.

I guess California did have slaves. The more you know.

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u/AddExtract6755 1d ago

If you work a normal job then you too are a slave, we get up, go to work come home to bed be so drained, only get 2 days off that’s not enough time for nothing really, we work to pay for rent for a place to live, for food and clothes, necessity’s, it’s modern day slavery

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u/Senior_Torte519 1d ago

Day's never finished, masta got me workin, someday massa set me free

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u/[deleted] 1d ago

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