This place charged almost 11% tax when the rate in LA city is 9.5%. I pointed it out to them and they agreed the amount was incorrect but the calculation was preprogrammed into their POS system and they “couldn’t do anything about it”. It was only a matter of a couple bucks to me but 1) this is illegal and 2) extrapolate this across all their customers and imagine how much extra “tax” they’re pulling in (which doesn’t get paid to the gov’t, so where does it go? 🤔)
by Salty_Wedding3960
29 Comments
What place is this
different areas in LA have different tax rates
Extremely helpful but where is this?
For the math challenged: $118.70 x .095 = $11.27
No good reason to hide the restaurants name…
POS is a poor excuse. They are totally scamming people.
Why protect the restaurant? Just post the name so people know to avoid it.
Stop hiding it. Name and shame, no one is coming after you.
For those asking, this was the Original Thai BBQ location on 3rd street. Don’t know if they do it in other locations
Wow pretty fucked up that you can program a POS system to print a different rate than is actually used in the calculation. Either the restaurant did some hacking, the system design is terrible, or the manufacturer allowed it on purpose.
They are including the tip in the tax percentage amount. $118.70+$17.81=$136.51
$136.51×9.5%=$12.97
I understand that the POS carrier has a service charge but businesses should understand that consumers are OK with being charged that fee so long as they are transparent about it. It’s about being honest.
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Nothing illegal here. Your gratuity has to be taxed.
r/confidentlyincorrect
Don’t come to reddit and ask a bunch of strangers for advice because they have no idea what they are talking about. Gratuity now has to be taxed in the state of California. This is *not* a scam, nor is the restaurant doing anything wrong. Maybe know what you’re talking or have a shred of insight or context about something before attacking an establishment and having a bunch of ignorant strangers get their pitchforks and give you idiotic suggestions.
“A mandatory payment designated as a tip, gratuity, or service charge is included in taxable gross receipts, even if the amount is subsequently paid by the retailer to employees.”
https://www.cdtfa.ca.gov/lawguides/vol1/sutr/1603.html
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Was the gratuity included in the bill?
The receipt suggests it was pre-added, and if that is the case, then it’s considered a taxable item per California’s tax/gratuity/service charges starting 2015.
Under the law, the tax is calculated with gratuity included.
Tips are not included in taxes when it is added later (ie a blank space to handwrite post payment)
If your answer to the above is yes, then the restaurant did nothing wrong and you are shaming someone for your own ignorance
It’s illegal AF not to post mandatory gratuity. They’re still changing the fucking prices. Seriously getting impatient with restaurants. Especially the tipping.
Why do people go out to eat and complain about tips etc. Just stay home and let those who are ok with the costs pay it.
How can you spend that much and a few % cause you that much grief?
Who cares tbh? They slapped you with a 15% gratuity because it was a larger bill. Nothing illegal about that. And then that gets added to the tax you pay. Which the difference is minimal.
I’m more concerned with you not wanting to tip over 15% on a large order like this. That’s the only reason people like you would get upset. You were planning on probably just giving a $10 on a $120 order and they hit you with gratuity instead. You just didn’t want to tip. LA really has the most weirdos lmao. No problem paying 5k for rent for a shit-hole 1BR apartment with shared bathroom and no laundry for 2 blocks, but tip over 15% on a meal?! That’s where you draw the line I guess.
Name and shame.
Depends if they have it taxed incorrectly via their POS.
Report them to CDTFA. I guarantee they will hold them accountable more than a Reddit post will. CDTFA will audit your ass so fast when they suspect mishandling of state taxes.
Meh.
The vast majority of LA Redditors never met a higher tax they don’t approve of.
An extra buck in sales tax on a $100 meal?
Even I don’t care.
You don’t tax on tips and also an auto Grat that’s only just shy of 10% Jesus they need to take care of their staff better and fix the POS system
Why not say they name of the restaurant directly so we can be warned and hold them accountable? You are gatekeeping justice at this point. Smh
I’m confused??
tax on tips what kind of a fuckery is this?