more-arw search

Q&A Forum

Are tips paid to employees via their paycheck listed on the Income Statement?

Elton Kelsay's Profile

All tips that employees receive from patrons at a restaurant are collected by the employer and then paid to the employees on their paycheck. Since this is not restaurant funds but rather patron tips, should the restaurant exclude these tips from wages and salaries expense?

Answers

ESSAM THABET
Title: Senior Cost Accountant
Company: Philips
(Senior Cost Accountant, Philips) |

if it Part from their contract , it should be recorded as A revenue then when you will Pay to them it will be part of wages , if not mention in their contract record as other revenue " TIPS " and for Payment it should not be part from wages you can Pay them under different name e.g bonus , overtime whatever but not Part of wages and salaries expense so when the management need to analyze this account for any reason they can see the correct figure of wages not overstated or under

1898 views
Topics

Get Free Membership

By signing up, you will receive emails from Proformative regarding Proformative programs, events, community news and activity. You can withdraw your consent at any time. Contact Us.

Business Exchange

Browse the Business Exchange to find information, resources and peer reviews to help you select the right solution for your business.

Learn more

Contribute to Community

If you’re interested in learning more about contributing to your Proformative community, we have many ways for you to get involved. Please email content@proformative.com to learn more about becoming a speaker or contributing to the blogs/Q&A Forum.