Legal Question in Tax Law in New Jersey
Is a restaurant service charge (really the tip for a large group of diners) taxable in New jersey?
Asked on 6/06/11, 12:43 pm
1 Answer from Attorneys
Walter LeVine
Walter D. LeVine, Esq.
To my knowledge the charge is considered part of the income of the restaurant which then claims a deduction for the identical amount it pays the server. This should result in no tax impact to the restaurant as the entries should be a wash. This is a response to an Internet question and the reply is not intended to be legal advice or as creating an attorney-client relationship.
Answered on 6/06/11, 1:58 pm