A service charge is a mandatory and automatic (pre-determined) fee that is typically added to your hotel or caterer or audiovisual (lighting, microphones, etc.) invoice for the service personnel. 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.
A gratuity is a voluntary amount of money given in exchange for a service performed. A gratuity is also known as a tip. Example -- We typically tip our waitress or our hair stylist for great service.
So, what's the difference -- A service charge is mandatory and it is pre-determined by the hotel or vendor. The gratuity is at the discretion of the bride or groom.
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.
Love and Soul Always, Kay
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