• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

AnswerTeller

Get the Answer!

  • APPEARANCE
    • Hair
    • Skin
      • Tattoo
      • Piercing
    • Breasts
    • Makeup
    • Clothing
      • Lingerie
    • Shoes
    • Fashion
  • RELATIONS
    • Dating
    • Love
    • Friendship
    • Sex
    • Family
      • Husband
      • Wife
      • Parents
      • Brother
      • Sister
      • Children
    • Marriage
    • Divorce
    • Teenagers
    • Gifts
  • HOME
    • House
    • Apartment
    • Renting
    • Cooking
    • Garden
    • Pets and Animals
    • Car
    • Bikes
  • HEALTH
    • Maternity
  • LEARNING
    • School
    • College
    • University
    • Education
    • Exams
    • Maths
      • Algebra
      • Geometry
    • Physics
    • Chemistry
    • Anatomy
    • Quiz
  • KNOWLEDGE
    • Life
    • Religion
      • Bible
    • Books
    • History
    • Law
      • Crime
    • Science
    • Economics
    • Politics
    • International
    • Languages
  • WORK
    • Careers
    • Jobs
    • Interview
    • Business
    • Real Estate
    • Office
  • MONEY
    • Credit
    • Loan
    • Buying
    • Selling
    • Shopping
    • Insurance
    • Taxes
    • Stocks
    • E-Money
    • Gambling
    • Scam
  • LEISURE
    • Entertainment
      • Home Cinema
    • Celebrities
    • Sports
    • Movies
    • Music
    • Dancing
      • Ballet
    • Dining Out
      • Restaurants
      • Fast Food
    • Vacations
    • Holidays
      • Christmas
      • New Year
      • Easter
      • Halloween
    • Photography
  • TRAVEL
    • Accommodation
      • Hotels
      • Motels
    • Flights
    • Airlines
    • Trains
  • TRIVIA
    • Fortune
      • Horoscope
    • How To
    • How Do I
    • Puzzle
    • Quiz
    • Miscellaneous
Browse: Home / MONEY / Taxes

Is the service charge given to restaurant employees subject to withholding tax on compensation?

Kitin: Is the service charge given to restaurant employees subject to withholding tax on compensation?
Most of the restaurants include service charge in the bill of its customers. This service charge is distributed to the restaurant employees as part of their payroll. Will the service charge also be subject to tax? Should the company withhold tax for this?

Answers and Views:

Answer by John H
It sounds like you are talking about the gratuity. My wife’s restaurant charges a gratuity of 15% if the party is over 6 people. The company withholds payroll taxes for these transactions because it is basically treated as a reportable tip.

Answer by Cute Mama
Yes. Per BIR Regulation, anything that an employee receives as compensation for their service rendered should be taxed.

I used to have a hotel and restaurant business and they distribute 85% of the service charge to their employees, which they subject to withholding tax on compensation and report it in their monthly 1601-C.

Related Questions:

  • 1.  What are the tax benefits for my situation?
  • 2.  How much income tax do savings cost?
  • 3.  Taxes?????
  • 4.  What countries tax the property held by churches and religions?

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Categories

  • APPEARANCE
    • Breasts
    • Clothing
      • Lingerie
    • Fashion
    • Hair
    • Makeup
    • Shoes
    • Skin
      • Piercing
      • Tattoo
  • COMPUTER
    • Computing
    • Hardware
    • Internet
      • Google
      • Networking
      • Spam
      • Yahoo
    • Microsoft
    • Programming
    • Software
  • HEALTH
    • Maternity
  • HOME
    • Apartment
    • Bikes
    • Car
    • Cooking
    • Garden
    • House
    • Pets and Animals
    • Renting
  • KNOWLEDGE
    • Books
    • Economics
    • History
    • International
    • Languages
    • Law
      • Crime
    • Life
    • Politics
    • Religion
      • Bible
    • Science
  • LEARNING
    • Anatomy
    • Chemistry
    • College
    • Education
    • Exams
    • Maths
      • Algebra
      • Geometry
    • Physics
    • School
    • University
  • LEISURE
    • Celebrities
    • Dancing
      • Ballet
    • Dining Out
      • Fast Food
      • Restaurants
    • Entertainment
      • Home Cinema
    • Holidays
      • Christmas
      • Easter
      • Halloween
      • New Year
    • Movies
    • Music
    • Photography
    • Sports
    • Vacations
  • MONEY
    • Buying
    • Credit
    • E-Money
    • Gambling
    • Insurance
    • Loan
    • Scam
    • Selling
    • Shopping
    • Stocks
    • Taxes
  • Popular Questions
  • RELATIONS
    • Dating
    • Divorce
    • Family
      • Brother
      • Children
      • Husband
      • Parents
      • Sister
      • Wife
    • Friendship
    • Gifts
    • Love
    • Marriage
    • Sex
    • Teenagers
  • TRAVEL
    • Accommodation
      • Hotels
      • Motels
    • Airlines
    • Flights
    • Trains
  • TRIVIA
    • Fortune
    • Horoscope
    • How Do I
    • How To
    • Miscellaneous
    • Puzzle
    • Quiz
  • WORK
    • Business
    • Careers
    • Interview
    • Jobs
    • Office
    • Real Estate

Search for More!

Copyright AnswerTeller © 2025 · About · Privacy Policy · Contacts · Sitemap Disclaimer: AnswerTeller.com is an informational website, and its content does not constitute professional advice of any kind. As an Amazon Associate, we earn from qualifying purchases.